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The dollar is on a tear, heading for its best week against the yen in three months. What's the secret to its success? Why, it's Jerome Powell, of course!
The Fed Chair gave a hawkish speech on Thursday, dashing market expectations that interest rates had peaked. The markets loved it, and the dollar surged.
The Aussie and kiwi dollars, on the other hand, are taking a beating. They're down about 2.3 percent and 1.75 percent, respectively, against the dollar this week.
But what about cryptocurrencies? Bitcoin and Ether are near multi-month highs, with Bitcoin trading at over $36,000 and Ether trading at over $2,100.
Is it a coincidence that these gains are coming at the same time as the dollar rally? We think not.
We think the markets are betting that the Fed will be able to tame inflation without crashing the economy. And if th
at happens, it's good news for risk assets like cryptocurrencies.
at happens, it's good news for risk assets like cryptocurrencies.
So, what's next for the dollar, cryptocurrencies, and the rest of the markets? Stay tuned to find out!
P.S. If you're looking for a good laugh, we recommend checking out the latest memes about Jerome Powell and the Fed. They're hilarious!
