The upward trend in favor of the USD continues, and now the USD is receiving unprecedented growth incentives from both a macroeconomic and geopolitical standpoint. Everything is fairly obvious right now: the war between Russia and Ukraine is still going on, and Europe's currencies are under pressure, since the sanctions imposed against Russia will negatively affect the EU economy and the economy of other countries in the region. Nevertheless, it is still essential to take into account macroeconomic reports and here, first of all, it should be noted the lowest number of jobless applications since September 1969. At the same time, investors' confidence in raising the Fed's rate is growing, amid high inflation. This stimulates USD to further growth, which makes this currency the most attractive asset for investors.
This week, rates have leveled out, and volatility has decreased after the panic on the market ended. The Swedish krona managed to strengthen slightly, investors' trust in the Fed's ability to raise rates is growing, despite high inflation.Most technical analysis tools indicate the effectiveness of the deals to SELL. Since March 7, there has been a trend reversal, as the excitement around the dollar and panic on the market started falling. We believe that the deals to SELL will be effective in the short term. In the long term, the deals to BUY may become relevant again. Moreover, they can be opened at a reduced price reached at the end of the price correction, if the trend reversal does not take place.
