logo |

News

    Home   >     Industry    >     Main body

    Dislisting Revealed by Powell: DXY Embraces a Bullish Market

    Abstract:Powell has implied early that his attitude to the prospect of the American economy is perfectly optimistic because of its turning point characterized by a revving economic recovery from late February to early April which was shown in the latest Beige Book of the Federal Reserve (Fed).
    image.jpg

      Powell has implied early that his attitude to the prospect of the American economy is perfectly optimistic because of its turning point characterized by a revving economic recovery from late February to early April which was shown in the latest Beige Book of the Federal Reserve (Fed). At the same time, Powell has explicitly noted that the Fed is going to cut down the bond purchase followed by interest-rate rises, a delisting-related comment made by him in public for the second time. It is believed that he is paving way for tight monetary policies and equipping the financial market with preparation.

      Fed had to save the market with massive quantitative easing (QE) during the financial crisis in the US and cope with the European debt crisis by means of QE2-3 again. Not until the Q1 in 2013 did Bernanke, the Fed Chair at that moment, disclose that delisting might be paved the way for by reducing the bond purchase in the future. He announced the delisiting in his final Feds meeting at the end of the same year, contracting the bond purchase from USD 85 billion then to USD 75 billion and reducing mortgage-backed securities and long-term bonds by USD 5 billion respectively.

      Interest-rate hikes were eventually proclaimed by the Fed in December 2015 in the wake of the commencement of delisting. During the implementation of hikes, it declared a reduction on balance sheets by USD 10 billion per month in September 2017 and a subsequent increase to USD 50 billion per month. The Feds transition from the disclosure of such a reduction to interest-rate rises and then to the reduction lasted for over four years. Therefore, it is estimated that the series of tight monetary policies made by the Fed at present will take it more than four years, which is believed to provide USD with strong support in the future.

      

    E8SW-hikxxna1412297.jpg

      Powell used to be extremely conservative but turns to be progressive due to robust economic statistics recently on one hand, and to the USD 1.9 trillion economic rescue and the USD 2.2 trillion infrastructure plan formed by the Biden administration along with approaches on the other hand, including tax hikes proposed by Yellen and the upcoming global minimum corporate tax rate. It is believed that not only Powell but investors worldwide are confident of the promising American economy.

      Gold prices have dropped further since the Fed revealed the delisting in early 2013 and didn‘t see a rally until interest-rate hikes were announced in December 2015, ending their 3-year downtrend of USD 550. As for the DJIA (Dow Jones Industrial Average) of the US stock market, it hit 26600 points in January 2018 from 14500 points after the Fed’s disclosure of delisting in 2013, an indication of the US stocks harboring powerful performance totally. In addition, DXY witnessed rapid growth from 78.91 in early 2013 to 103.82 in January 2017. As such, the above-mentioned situations of the market are poised for reappearance.

    Latest News

    United Arab Emirates Dirham

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United Arab Emirates Dirham
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.