The dollar is getting stronger. The currency rose in Asia on Tuesday morning. As dollar, strong euro remained below a strict resistance level; The release of U.S. inflation data over the weekend could lead to the gain in the U.S. currency. The U.S. dollar index, which tracks the dollar exchange rate against a basket of other currencies, rose 0.22% to a total of 95,605. The USD/JPY pair rose to 115.44 and rose 0.28%. The AUD/USD pair fell to 0.7108 in total. The NZD/USD pair failed to 0.6631, down 0.02%. The USD/CNY pair fell 0.02% to 6.3606. The GBP/USD pair dropped to 1.3514, up 0.15% overall.
The euro jumped 2.7% last week after the European Central Bank caused a sudden change in tone last week. However, the single currency rose; it failed to beat the resistance at around $1.1483. Yields on European bonds have been on an upward trend. The euro last traded at $1.1441.
A stronger-than-expected U.S. job report last week highlighted inflation. Investors are betting on a tighter monetary policy stance by the U.S. Federal Reserve. Futures markets estimate a 1 to 3 chance that the Fed will raise interest rates by 50 basis points in March 2022; The likelihood of further aggressive growth is likely to lead to an increase in the dollar.
The CPI will be crucial in how the narrative develops by March. Although Tuesday looks quiet in terms of data publishing; Investors are already watching U.S. inflation data; Including the Consumer Price Index, which will be released on Thursday. On Monday, Bitcoin rose to an average of 50 days and reached $44,000. Currently, it is more than 17% according to the data of 4 sessions.
Dollar and Inflation
Investors are now paying attention to both the growth of the dollar and the euro and the inflation rate, which is quite noticeable. Part of the experts will express their opinion shortly and predict a further increase in the currency.
