The reasons for the rise in the dollar immediately after the release of the results of the US Federal Reserve meeting.

What are the reasons for the rise in the dollar immediately after the release of the results of the US Federal Reserve meeting?

The US dollar consolidated its clear gains during trading today, Wednesday, taking advantage of the release of the results of the US Federal Reserve meeting for February, which included a number of positive points that reinforced expectations of raising US interest rates at a strong pace during the Federal Reserve meeting next March.

 The reasons for the rise in the dollar immediately after the release of the results of the US Federal Reserve meeting.

During trading, the dollar index rose clearly to add to its morning profits at the beginning of trading, as the dollar index rose by 0.30% and is currently trading near the level of 104.48 points, and the dollar index may continue to rise above these levels towards the next resistance levels near the level of 104.65 points, and if it can Whoever surpasses it, the dollar will face strong resistance near the level of 105.25 points, and perhaps after that at the level of 105.65 points, which is the highest level of the dollar index since the beginning of last January.

On the other hand, the dollar index may fail to complete the strong rise and decline if some negative US data is issued later this week, but it will certainly find strong support at 104 points, then at 103.50 points, and finally, at 103 points. .

The dollar benefited from the inclusion of some positive points in the results of the Federal Reserve meeting, on top of which was the desire of some members of the US Federal Reserve to raise interest rates by about 50 basis points during its last meeting, and also, the members’ assertion of the need to continue raising interest rates in the upcoming bank meetings to control the rise in inflation.

Also, the Fed's results confirmed that restrictive monetary policy is required to bring the inflation rate down to 2%, and that it is likely that the process of lowering inflation will take some time. Also, pointing out that the labor market is very tight, and the demand for labor exceeds the available supply, and that this contributes to upward pressure on the US inflation rate.

These positive points reinforced the market's expectations regarding the Fed's continuation of raising interest rates during the next March meeting by about 25 points and perhaps 50 basis points in light of the slowdown in the pace of inflation falling during last January. 1825 dollars an ounce.