In the Asian session on Thursday (March 23), the latest price of the U.S. dollar index was 102.39, and the opening price was 102.56. “They’re in a dilemma,” said bond portfolio manager Wilmer Stith. “There’s a crisis in the banking sector and the Fed is really in a very fragile and troubling position.”
“If they stop and reverse (rate hikes), it could lead the market to think they’re not fighting inflation when it’s still a problem, leading to higher mortgage rates and higher corporate funding costs, which is even more detrimental to the economy impact,” he added.
However, at present, according to the CME Fed Watch tool, nearly 90% of investors still believe that the Fed will raise interest rates by 25 basis points at this meeting, and only 10% of investors believe that the bank will “stand still” and suspend one rate hike.
The U.S. dollar falls back to the support area of 102 to 100.5. If it stabilizes here and rebounds and rises repeatedly, if it breaks here, it may return to the previous weak sideways and fluctuate and fall. Therefore, the aggressive U.S. dollar should not excessively chase short when it is below 102. You can try to enter the market at 102.
