Increases in interest rates elevate the value of the U.S DOLLAR, with this information it should be no surprise to see DXY increasing as the FED continue to raise rates.
As we have seen the past year, with each meeting, the rates increase, the dollar continues it's parabolic rise.
IF the Fed continues to increase rates as projected through the end of 2022, DXY will continue rising with its occasional pull backs. If the FEDs halt the increase of rates OR begin lowering, the US Dollar will only then begin crashing down from it's MEGA bull run. So far I see no sign that inflation will reach Powell's expected target so I don't see a slow down in rates until 2023.
Unfortunately, the rise in the dollar really hurts our friends around the world, the rise in import fees begin chipping away at foreign economies and China plus others countries are already in a bad economic state unless their government begin aid or inflations subsides.
As we have seen the past year, with each meeting, the rates increase, the dollar continues it's parabolic rise.
IF the Fed continues to increase rates as projected through the end of 2022, DXY will continue rising with its occasional pull backs. If the FEDs halt the increase of rates OR begin lowering, the US Dollar will only then begin crashing down from it's MEGA bull run. So far I see no sign that inflation will reach Powell's expected target so I don't see a slow down in rates until 2023.
Unfortunately, the rise in the dollar really hurts our friends around the world, the rise in import fees begin chipping away at foreign economies and China plus others countries are already in a bad economic state unless their government begin aid or inflations subsides.