Fed and regional bank stress add to Dollar's appeal – ING

Source Fxstreet

The Dollar is doing a little better and equity markets are a little softer after the Federal Reserve pushed back against early easing and US regional banks again hit the headlines, economists at ING report.

Two more reasons to hold Dollar

The Fed's pushback against a March cut has helped short-dated US rates edge a little higher and offered some support to the Dollar.

New York Community Bancorp's (NYCB) share price was marked down heavily on poor quarterly earnings, with some of the large loan loss provisions being linked to the Commercial Real Estate sector - perhaps the Achilles Heel of the strong US story. We did notice a 7 bps widening of the 3m EUR/USD cross-currency basis swap on the NYCB news. If the US regional bank crisis flares up again, keep a close watch on this basis swap, where the USD may initially strengthen until the Fed calms funding conditions Down again.

DXY should continue to grind higher towards the upper end of a 103.00-104.00 range.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Markets in 2026: Will gold, Bitcoin, and the U.S. dollar make history again? — These are how leading institutions thinkAfter a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
Author  Insights
Dec 25, 2025
After a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
placeholder
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
Author  Mitrade
Dec 26, 2025
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
placeholder
My Top 5 Stock Market Predictions for 2026Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
Author  Mitrade
Jan 06, Tue
Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
placeholder
Bitcoin jumps to three-month high as US–Iran talks unwind oil risk premiumGlobal markets moved sharply on Wednesday as signs of progress in US–Iran negotiations triggered a rapid unwind of war-driven positions, dragging oil prices lower while lifting equities and cryptocurrencies. Bitcoin climbed above $81,000, its highest level in three months, while Brent crude fell roughly 11% to around $98 per barrel. The S&P 500 rose 0.85%...
Author  Cryptopolitan
Yesterday 06: 34
Global markets moved sharply on Wednesday as signs of progress in US–Iran negotiations triggered a rapid unwind of war-driven positions, dragging oil prices lower while lifting equities and cryptocurrencies. Bitcoin climbed above $81,000, its highest level in three months, while Brent crude fell roughly 11% to around $98 per barrel. The S&P 500 rose 0.85%...
placeholder
WTI falls to near $93.50 after Israel, Iran signal an end to hostilitiesWest Texas Intermediate (WTI) oil price loses ground after registering modest gains in the previous day, trading around $93.70 per barrel during the Asian hours on Friday.
Author  FXStreet
6 hours ago
West Texas Intermediate (WTI) oil price loses ground after registering modest gains in the previous day, trading around $93.70 per barrel during the Asian hours on Friday.
Related Instrument
goTop
quote