The demand for the US dollar surges after the Fed’s meeting, suggesting tapering might be on the way while cryptocurrencies face market pressure.
Euro-US dollar hit its lowest since 2020 last while Australia failed to capitalize on the upbeat job figures. Similarly, gold experiences quick fluctuations after oil dips to its lowest since May 2021. The quick changes put everyone’s eyes on US job figures and pandemic headlines as the factors can significantly affect the market.
After the Federal Reserve conducted its latest meeting, the market is speculating taper to arrive. The meeting held in July suggests that the bank might be considering decreasing its bond-buying scheme this year. However, several committee members believe the benchmarks for substantial further progress are already achieved.
As the market was already expecting to taper, a slight dip in the US dollar price resulted. Another reason behind the speculation was the tendency of Federal Reserve officials to end purchases and raise rates. As a result, despite the initial drop, the currency came around and increased its market value.
Safe-haven flows also play a crucial role in the dollar’s demand growth. China’s techlash, increasing patients, and vaccine efficacy are also adding to the dim market setting.
That is why the Euro-US dollar has reached 1.17, its lowest since last year’s end. In addition, a rise in the number of infected individuals is adding pressure to the market. The increase resulted in the GBP-USD dropping to 1.37.
Despite Australia’s unemployment rate showing improvement, AUD-USD went below 0.72. The cryptocurrency market experienced a bullish week, but it also added pressure on the sector. Robinhood also expects the revenue to decrease, especially for currencies like Dogecoin. Meanwhile, Solana recently hit its all-time high and entered the top ten cryptocurrencies globally.