The US Dollar Is Determined to Extend Its Upward Streak Despite the Euro Drop

The US Dollar is determined to extend its upward streak despite the Euro’s drop to below parity levels again. The market expects the FED to remain hawkish because interest rate hikes in the United States and Europe to combat inflation may have a significant impact on the global economy.

Before the Jackson Hole Symposium, we witnessed sharp price action on the currency pairs. There is a high expectation for the Dollar Index to fall back from the key zone of 109.400-500 to prevent further swings. However, on the euro, there are also opportunities for it to fall or even smash through the 0.990 key zone.

The Euro Drop to Below Parity Levels

Due to the income hike cycle, the Asian indices are currently trading in a red-hot decline. A consistent decline has been seen across the board in the markets in the Asian domain. This is a result of the FED placing a priority on further growth instead of price stability during the Jackson Hole Economic Symposium on Friday. The FED, causing a hike in the interest rate, has resulted in increased price liquidity, leading to a growth rate but resulting in a decline in the American equity market.
According to TD Securities analysis, the gold price is clinging to the previous sell-off. Gold: Powell’s hawkish address will have an impact on gold. We have seen pressure on the downside price tendency as the yellow metal continues to be reduced. For now, Brent and WTI are likely to remain in the range of 90-100 pips for a couple of weeks. Silver has made a bounce from the support level of 18.500 pips. Copper is also attempting to remain range-bound while trading below the 3.7000 key zone.

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