2022/02/14 (002) Technical Analysis – DXY

The USD As A Possible Safe Haven Currency?
The Fed Is Likely To Raise Interest Rates Most In Our West!
Also Because US Economy Outperforms All Other Western Countries?!


100 rose in historical comparison. And or so-called cryptocurrencies were created. And last but not least, inflation seems to be galloping away. Due to the irresponsible fiscal policy of the US Democrats. Because the USA – after Trump organized the US economy into an independent energy country for the first time in several decades – not only has to import oil from abroad again. But because the US Democrats also distribute state support to their voters. And with their US Lockdown Policy, they mask the country in the truest sense of the word down – and thus bring the US economy to a standstill. And thus drive up the prices of goods. Because the money supply in circulation is not only growing faster. But because the production chain also starts to stutter. There are delivery bottlenecks. So that it is hardly possible that scarce supply of goods, let alone production cost prices, come down. On the contrary. And that with a historically negative trade balance. What means, that the US foreign debt is growing and higher interest rates have to be paid. The debt arises because spending on imports exceeds revenue on exports of goods.

The bulls are trading the DXY while todays monday trading session back around 96 points – to new two weeks highs
The DXY (US Dollar Index) gained further ground against its major peers on Monday, hitting an almost two-week high of 96.32 earlier this session as the risk-off mood, backed by escalating geopolitical tensions in Eastern Europe, is boosting the currency safe-haven demand. US security adviser Jake Sullivan told CNN that Russia could launch an invasion of Ukraine this week. President Biden told Ukrainian President Zelensky that the US would respond swiftly and decisively to any further aggression against Ukraine. Aside from safe-haven bids, a looming policy tightening cycle from the Federal Reserve supercharged the existing bullish sentiment. Investors now await the FOMC minutes on Wednesday and speeches from several Fed officials during the week for any updates on the size ofa federal funds rate hike next month. The DXY (US Dollar Index) held around 96 on Monday after gaining some ground last week, as inflationary and geopolitical risks boosted safe-haven demand for the currency. US national security adviser Jake Sullivan said over the weekend that a Russian invasion of Ukraine “could begin at any time” and warned of civilian casualties, prompting the US to threaten Moscow with “swift and severe costs.” Meanwhile, data last week showed that US inflation accelerated to a 40-year high of 7.5% in January, driving the benchmark 10-year yield above 2% for the first time since 2019 and prompting St. Louis Fed president James Bullard to call for a bigger rate hike, expecting a full percentage point increase by July.

EUR/USD falls amid Tensions with Russia