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The US dollar rose to levels hasn’t been reached in two years

On Tuesday, 5.3.2022, the US dollar continued to rise and achieve great gains against all currencies, as it rose to a level not reached since May 2020, this comes after the speech of the Fed members, as the US dollar jumped against the yen above 123.60, while the euro fell to below 1.0900, Fed member, Mr. Bernard said that the inflation is too high and subject to risks, and the FOMC is ready to take stronger action. He added: We are committed to reducing inflation to a target of 2%, recognizing that stable low inflation is vital for maintaining a strong economy and a job market that suits all.

Although the US dollar rose sharply, the Australian dollar was also strong and rose to its highest level in nine months, and this came as a result of the meeting of the Reserve Bank of Australia, which indicated its guidance on the possibility of raising interest rates by 50 points during next June.

European and US stock indices fell as the European Union set a plan to ban coal imports from Russia, as it is likely to have a limited impact if Germany and Hungary don’t agree on the plan.

The move is likely to push Russia to become more isolated, with Western sanctions tightening, and the possibility of stagflation in the global economy in the coming months.

Gold prices are 0.60% down, with US Treasury yields rising, and we are expected to see support levels near $1900 per ounce.

Oil prices have also risen recently, as Saudi Arabia raised the selling price to its customers in Asia, and could rise further after imposing new sanctions on Russian supplies.

The Fed pointed out at its meeting on Wednesday 6.2.2022 that monetary policymakers will move towards more tightening in raising interest rates at the next meeting. Fed members agreed to reduce its holdings of $60 billion in Treasury securities and $35 billion in mortgage-backed securities.

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