Bennie Kincaid 
The data shows robust economic performance as of now for 2023. As a result of the strong economic outlook, there has been a significant change in the price of USD.
It can be seen that last year’s poor price performance has already been turned into a strong one.
Recently the Feds have talked about a 50-basis point increase in interest rates as another encouraging news.
As the new trade week being today, the USD has continued its recovery and is strengthening against all major currencies.
As USD recovers and further increases its price gap over other fiat currencies. The AUD and NZD are among the poor performers.
Moreover, the currencies of developing countries have also taken the nudge.
JPY Continued Its Poor Performance
Although the yen fell to its lowest point of the year, it did not have a positive effect on Japanese stocks.
As the result, the USD gained much-needed strength, and the Japanese, Hong Kong, and China stock markets saw declines in their respective indexes by 1%.
Furthermore, Europe’s biggest Stock Market Index “STOXX 600,” lost its four consecutive days’ rally. On the flip side, the U.S. futures market has seen a decline of 0.5%.
The U.S. bonds yield surged by 3.90%. Elsewhere, European bond yields increased by 5-8 basis points.
The Rise in USD Further Puts Pressure on Gold
Most recently United States Federal Reserves officials in their meeting discussed the possibility of a further increase in the interest rate by 50 bps.
Unfolding the situation money market experts clearly stated that the possibility of a further increase in the policy rate and the strong USD is not a match for gold.
USD going further and further strong is a killer blow for the commodity markets.
The further hike in the price of USD means the overall commodity market might reach its all-time low of the past two years.
Currently, the gold is estimated at around $1820, the lower the gold has touched so far in 2023.
In WTI futures market Crude oil is being traded at $76.60, Crude Oil has touched its 8-day lowest mark. Experts also believe that Brent Oil is next to follow the WTI.
By the end of 2022, many market experts argued that in 2023, the dollar’s role in the international economy will shrink.
However, the recent rally in the price of the USD has proven every single one of them wrong.
Where is U.S. Dollar Heading Next?
A famous fiat currency writer and analyst Chris Kimble in his recent story, written for Investing.com argued that USD is creating a gigantic pattern of growth.
As of now, the U.S. Dollar Index still sits over the 100 mark. Further rise is on its way as the Fed is most likely to increase the interest rate in the month of March.
The dollar has seen massive support the previous week. Now, at the start of the new trading week, USD is all set to cross the 23.6 Fibonacci mark.
If USD surpasses this level of resistance and retains its price above that level, the US Dollar Index will touch the 106 mark by the end of this week.
Experts have already said that an interesting time is ahead for those who are loyal USD buyers.
As Euro, Yen, AUD, and NZD all have declined against the USD, it seems that massive inflows are coming for the USD.
Moreover, this gigantic support of the USD will also cause trouble to the currencies of developing countries.
With USD skyrocketing, it would give the USD power to further manipulate the global markets.
Experts seemed surprised when the USD index replicated a great rally amid the Feds claims to increase the interest rate to keep inflation under control.
However, the growth of the USD Index is strictly aligned with the growth of the US economy.
In case inflation and recession talks started to slow down economic growth, USD can replicate the volatile price performance similar to the FY 2022.
But as of now, USD seems to be heading in the right direction.
