The dollar climbed as pressure stayed on bonds, with the yield on the U.S. 10-year government bond hovering at its highest levels in a year after Federal Reserve Chairman Jerome Powell expressed little to no concern about the recent spike in yields.
The U.S. dollar benefits in a few different ways. Powell’s confidence in the U.S. economy and its ability to weather the increase in rates is good for the U.S. dollar. A higher more attractive yield also draws demand for the greenback and most importantly, the slide in stocks drives investors into the currency’s safety.
Stocks crashed in return as well as Bitcoin. If the DXY moved up, I think everything will cool off for a while.
Disclaimer: The information presented is NOT financial advice.
The U.S. dollar benefits in a few different ways. Powell’s confidence in the U.S. economy and its ability to weather the increase in rates is good for the U.S. dollar. A higher more attractive yield also draws demand for the greenback and most importantly, the slide in stocks drives investors into the currency’s safety.
Stocks crashed in return as well as Bitcoin. If the DXY moved up, I think everything will cool off for a while.
Disclaimer: The information presented is NOT financial advice.
