Dollar Rally Is Coming to an End, According to One Key Indicator
- DeMark technicals signal dollar is about to head lower
- Greenback has exhausted support from ultra-hawkish Fed
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The dollar’s bullish run since the end of May could finally have reached an exhaustion point.
Money markets on Wednesday priced in for the first time a further 225 basis points of Federal Reserve interest-rate hikes by the end of 2022, the sharpest pace of tightening since 1994. The FOMC’s latest minutes later in the day detailed the Fed’s plan to shrink its balance sheet by more than $1 trillion a year. The Bloomberg Dollar Spot Index advanced a fifth day, yet closed near the middle of its intraday range.