This site uses cookies to provide you with a great user experience. By visiting monetamarkets.com, you accept our cookie policy.

Allow all

This website is operated by Moneta Markets Ltd, which is not authorised or regulated by the UK Financial Conduct Authority (FCA) and does not offer or promote services to UK residents. Access to this website is restricted in the UK and the content is not intended for distribution to, or use by, any person located in the UK. If you believe you have reached this website in error, please exit the page now

Exit Website Continue

Please note that Moneta Markets operates this website and its services are not directed at residents of your jurisdiction.

The information on this site 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.

If you have arrived here in error, we kindly advise you to exit the site.

Continue to Site

USD Strength Extends as Fed Hawkish Bets Pressure Major Currencies | 19th May, 2026

USD Dominates FX

Global forex markets remain firmly tilted in favor of the US Dollar as rising expectations of a more hawkish Federal Reserve continue to drive broad-based USD strength. Major currencies are under pressure across the board, with political uncertainty in the UK, weak risk sentiment in commodity-linked currencies, and safe-haven flows reinforcing USD dominance in early trading.

USD/CHF Forecast

Current Price and Context

USD/CHF is climbing as the Swiss Franc weakens amid rising expectations that the Federal Reserve will maintain a hawkish policy stance for longer. The pair reflects clear USD dominance across G10 currencies.

Key Drivers

• Geopolitical Risks: Safe-haven flows are favoring USD over CHF

• US Economic Data: Strong data reinforces Fed tightening expectations

• FOMC Outcome: Hawkish Fed outlook supports USD demand

• Trade Policy: Stable global conditions limit CHF strength

• Monetary Policy: Fed-BoJ divergence dynamics indirectly support USD strength

Technical Outlook

• Trend: Bullish USD/CHF

• Resistance: 0.8920

• Support: 0.8850

• Forecast: Further upside likely if USD momentum persists

Sentiment and Catalysts

• Market Sentiment: Bullish USD

• Catalysts: Fed commentary and US inflation expectations

GBP/USD Forecast

Current Price and Context

The British Pound is softening as political uncertainty in the UK combines with rising US interest rate expectations, putting continued pressure on GBP/USD.

Key Drivers

• Geopolitical Risks: UK political instability weighs on sentiment

• US Economic Data: Strong US data supports USD strength

• FOMC Outcome: Hawkish Fed bets widen rate divergence

• Trade Policy: Limited UK macro support for GBP

• Monetary Policy: BoE remains comparatively less aggressive than Fed

Technical Outlook

• Trend: Bearish

• Resistance: 1.3320

• Support: 1.3180

• Forecast: Downside pressure likely to continue

Sentiment and Catalysts

• Market Sentiment: Bearish GBP

• Catalysts: UK political headlines and US macro data

US Dollar Index (DXY) Forecast

Current Price and Context

The US Dollar Index is holding firm above the 99.00 level, supported by growing expectations that the Federal Reserve will maintain a restrictive policy stance for an extended period.

Key Drivers

• Geopolitical Risks: Global uncertainty supports safe-haven USD demand

• US Economic Data: Strong data reinforces bullish USD outlook

• FOMC Outcome: Hawkish Fed expectations remain the core driver

• Trade Policy: Stable macro environment favors USD resilience

• Monetary Policy: Higher-for-longer rate expectations dominate sentiment

Technical Outlook

• Trend: Bullish

• Resistance: 99.80

• Support: 98.70

• Forecast: Upside bias remains intact

Sentiment and Catalysts

• Market Sentiment: Bullish USD

• Catalysts: Fed speakers and US inflation data

NZD/USD Forecast

Current Price and Context

The New Zealand Dollar is weakening against the US Dollar despite hopes surrounding potential US-Iran diplomatic progress, as USD strength remains the dominant market force.

Key Drivers

• Geopolitical Risks: Limited support from geopolitical optimism

• US Economic Data: Strong US fundamentals outweigh NZD sentiment

• FOMC Outcome: Hawkish Fed outlook pressures NZD

• Trade Policy: Global risk sentiment remains cautious

• Monetary Policy: RBNZ policy expectations offer limited support

Technical Outlook

• Trend: Bearish

• Resistance: 0.6040

• Support: 0.5960

• Forecast: Further downside risk remains

Sentiment and Catalysts

• Market Sentiment: Bearish NZD

• Catalysts: US Dollar momentum and risk sentiment

AUD/USD Forecast

Current Price and Context

The Australian Dollar is weakening below the mid-0.7100s as broad US Dollar strength offsets support from relatively hawkish RBA Minutes.

Key Drivers

• Geopolitical Risks: Risk-off sentiment weighs on AUD

• US Economic Data: Strong US data supports USD dominance

• FOMC Outcome: Hawkish Fed expectations continue driving flows

• Trade Policy: China-linked demand concerns weigh on AUD

• Monetary Policy: RBA hawkish tone is insufficient to offset USD strength

Technical Outlook

• Trend: Bearish

• Resistance: 0.7180

• Support: 0.7080

• Forecast: Downside bias remains unless USD weakens

Sentiment and Catalysts

• Market Sentiment: Bearish AUD

• Catalysts: US data releases and Fed commentary

Wrap-Up

Global markets remain firmly anchored in US Dollar dominance as rising expectations of a prolonged hawkish Federal Reserve continue to pressure major currencies, with political instability in the UK and weakening risk sentiment in commodity-linked currencies further reinforcing downside momentum across FX markets as traders continue to position defensively ahead of upcoming US macroeconomic data releases.

Ready to trade global markets with confidence? Join Moneta Markets today and unlock 1000+ instruments, ultra-fast execution, ECN spreads from 0.0 pips, and more! Start now with Moneta Markets!

Risk Warning:
Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how Derivatives work and whether you can afford to take the high risk of losing your money. Trading derivatives is risky. It isn't suitable for everyone; you could lose substantially more than your initial investment. You don't own or have rights to the underlying assets. Past performance is no indication of future performance and tax laws are subject to change. The information on this website is general in nature and doesn't consider your personal objectives, financial circumstances, or needs. Please read our legal documents and ensure that you fully understand the risks before you make any trading decisions.
Regional Restrictions:
The information on this site is not intended for residents of Canada, Cyprus, France, Spain, Russia, Ukraine, Italy, the United States, or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Legal Information:
Moneta Markets is a trading name of Moneta Markets (Pty) Ltd, an authorised Financial Service Provider (“FSP”) registered and regulated by the Financial Sector Conduct Authority (“FSCA”) of South Africa under license number 47490 and located at 18 Cavendish Road, Claremont, Cape Town, Western Cape, 7708 South Africa. Company Registration Number: 2016 / 063801 / 07. Contact Phone Number: +27 (10) 1429139. Operational Office: Unit 7, 18 Cavendish Road, Claremont, Cape Town, Western Cape, 7708 South Africa.

Mmonexia Ltd, facilitates payment services to the licensed and regulated entities within the Moneta Markets Organizational structure.

Moneta Markets Trading Limited is regulated by the Financial Services Commission (FSC) of Mauritius, with Company No. 211285 GBC and License No. GB24203391. Its registered office is located at Suite 201, 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, Mauritius.

Mmonexia Ltd registered in the Republic of Cyprus with registration number HE436544 and registered address at Archbishop Makarios III, 160, Floor 1, 3026, Limassol, Cyprus. Mmonexia Ltd, facilitates payment services to the licensed and regulated entities within the Moneta Markets Organizational structure.

Moneta Markets Limited. Business Registration Number:72493069. Registration Address: Flat/RM A 12/F ZJ 300, 300 Lockhart Road, Wan Chai, Hong Kong. Contact Phone Number: +852 37522556. Operational Office: Unit 1201, 12/F, FWD Financial Centre, 308 Des Voeux Road Central, Sheung Wan, Hong Kong.
Legal Information:
Moneta Markets Capital Ltd is registered in England and Wales under company number 08279988, registered office address, Amlbenson the Long Lodge, 265-269 Kingston Road, Wimbledon, England, SW19 3NW and authorised and regulated by the Financial Conduct Authority in the United Kingdom (FRN 613381) to provide services to UK clients and is a wholly owned subsidiary of Moneta Markets Excellence Holding Limited. Other Moneta Markets entities are not authorised or regulated by the Financial Conduct Authority and do not offer services to UK residents.

Moneta Markets is a trading name of Moneta Markets (Pty) Ltd, an authorised Financial Service Provider (“FSP”) registered and regulated by the Financial Sector Conduct Authority (“FSCA”) of South Africa under license number 47490 and located at 18 Cavendish Road, Claremont, Cape Town, Western Cape, 7708 South Africa. Company Registration Number: 2016 / 063801 / 07. Contact Phone Number: +27 (10) 1429139. Operational Office: 18 Cavendish Road, Claremont, Cape Town, Western Cape, 7708 South Africa.

Moneta Markets is a trading name of Moneta Markets Ltd, registered under Saint Lucia Registry of International Business Companies with registration number 2023-00068.

Moneta Markets Trading Limited is regulated by the Financial Services Commission (FSC) of Mauritius, with Company No. 211285 GBC and License No. GB24203391. Its registered office is located at Suite 201, 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, Mauritius.

Mmonexia Ltd registered in the Republic of Cyprus with registration number HE436544 and registered address at Archbishop Makarios III, 160, Floor 1, 3026, Limassol, Cyprus.
Legal Information:
Moneta Markets is a trading name of Moneta Markets (Pty) Ltd, an authorised Financial Service Provider (“FSP”) registered and regulated by the Financial Sector Conduct Authority (“FSCA”) of South Africa under license number 47490 and located at 18 Cavendish Road, Claremont, Cape Town, Western Cape, 7708 South Africa. Company Registration Number: 2016 / 063801 / 07. Contact Phone Number: +27 (10) 1429139. Operational Office: 18 Cavendish Road, Claremont, Cape Town, Western Cape, 7708 South Africa.

Moneta Markets is a trading name of Moneta Markets Ltd, registered under Saint Lucia Registry of International Business Companies with registration number 2023-00068.

Moneta Markets Trading Limited is regulated by the Financial Services Commission (FSC) of Mauritius, with Company No. 211285 GBC and License No. GB24203391. Its registered office is located at Suite 201, 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, Mauritius.

Mmonexia Ltd registered in the Republic of Cyprus with registration number HE436544 and registered address at Archbishop Makarios III, 160, Floor 1, 3026, Limassol, Cyprus.