The post-Fed sentiment was the catalyst for the latest leg higher in the dollar this week. Powell & co. offered a more hawkish tilt and that was enough to see markets scramble to price in five rate hikes by the Fed this year.
In turn, the dollar has surged higher as yields also climbed – both benefiting from the above sentiment.
With the dollar scaling to new highs since July 2020, the charts are also telling the story that it is tough to really bet against the greenback at the moment. Let’s take a look.
EUR/USD has fallen to its lowest since June 2020 and despite a pause in the drop for now, there isn’t much support standing in the way of a further push towards 1.1000 from here. That offers plenty of room for sellers to roam in the meantime.
Meanwhile, GBP/USD has fallen rather rapidly in recent days as sellers solidify a break below the 100-day moving average (red…
