This website uses cookies to ensure you get the best experience on our website
Join us on Telegram for FREE daily market updates!

Blog

Date:
26th Jan 2021
Author:
CryptoAltum Research Team

The USD Bounce Higher, will the FED offer Support?

Caught between a wave of conflicting narratives—the loose monetary policy and projection of higher inflation, the USD price action remains choppy but bullish against major currencies. However, this advance could be accelerated more so if there are positive comments from the Federal Reserve chair, Jerome Powell. Admittedly, the US is not out of the woods yet. Therefore, while analysts expect Jerome to walk the tightrope by saying there is a need for more capital injection, he should also express his confidence in the economy as the coronavirus vaccine gets wider distribution.


Details: 

Judging from recent developments, both politically and hard cold numbers, the theme for Q1 2021 will be policymakers and central bankers charting the best way forward on matters introducing appropriate measures to combat the virus and further flatten the curve, and means of jump-starting the economy. USD's fundamentals will be conflicted, but the greenback is highly to recover due to the economy's positive outlook. Subsequently, the USD might recover as a result now that conditions in Europe, especially France that might go back to another lockdown, are getting out of hand even as the economy recovers.


Impact on the USD: 

Bullish. The USDX remains in range below $91. However, the candlestick arrangement favors bulls who may build on Jan 22 advances against major pairs to breach major resistance levels. If Jerome Powell reassures the investment community on the FED's policy while concurrently holding out hope for the economy, there could be more upsides for the USD in the medium term.


More market news over on our Blog


Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.
  • Copyright Excel Innovations Ltd (CryptoAltum) 2020