Stay long US dollars this week - Macquarie - The U.S. dollar hit its highest in almost five months on Tuesday, and Macquarie advises traders to stay long the greenback with more gains possible.

The dollar index rose to 105.1 on Tuesday, its highest level since Nov. 14, adding to Monday’s sharp gains on Monday after U.S. data unexpectedly showed the first expansion in manufacturing since September 2022. 

The stronger-than-expected manufacturing PMI release prompted a sharp rise in U.S. yields, with the benchmark 10-year yield climbing all the way up to 4.40%, providing support for the dollar.

“We haven't been too surprised by the bond market's response, as we've said since mid-March that the shake-out in the bond market wasn't over and that 10-year yields would climb back up to their February highs, around 4.35%,” said analysts at Macquarie, in a note dated April 2.

Relatively strong U.S. data would condition a data-dependent Fed to be more cautious about cutting the policy rate, and caution would be also induced by the high inflation prints in January and February and the risk of negative supply shocks.

This brings this week’s speeches by Federal Reserve officials into focus as they could be a new catalyst for dollar gains, “as they may indicate that Powell's dovishness is not representative of the Fed's nineteen dots, nor the FOMC median — which is more hawkish,” Macquarie said.

The bank’s analysts expected the greenback to remain firm, at least during the critical period between now and the release of the March U.S. inflation reports.

“That's because the USD will do well against the major counterparts (EUR, GBP, CAD, AUD) when the U.S. economic data is still relatively outperforming, when inflation remains a bigger threat in the U.S. than in Europe, and when geopolitical worries are emerging again.”


Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: