June 28, 2023

2023-06-28 21:59:11

After speeches by Federal Reserve Chairman Jerome Powell and several central bankers,dollar indexOn Wednesday (28th) rebounded,JPYContinued to weaken once morest the dollar. Powell said at the meeting that the U.S. job market is still strong, and interest rates may be raised once more in July, and the possibility of consecutive interest rate hikes may not be ruled out.

ICE, which tracks the dollar once morest six major currencies, in late U.S. trade dollar index (DXY) rose 0.47 percent to 102.97.

Speaking at the European Central Bank’s (ECB) annual forum on Wednesday, Jerome Powell joined Bank of England Governor Andrew Bailey, ECB President Christine Lagarde and Bank of Japan Governor Kazuo Ueda, noting that this year will continue Raise interest rates, and do not rule out the possibility of continuous interest rate hikes. He also predicted that inflation will not return to the Fed’s 2% target until 2025.

CME’s FedWatch tool showed expectations for a one-point rate hike in July rose to 81.8% from 76.9% the day before.

Erik Bregar, director of foreign exchange and precious metals risk management at Silver Gold Bull, said: “It’s not a big move. To me, they’re all reading the same script as recent central bank meetings.”

Economic data showed that the U.S. goods trade deficit narrowed in May as imports fell, and even a rise in inventory investment was not enough to prevent trade activity from dragging on economic growth in the second quarter.

Facing the continuous interest rate hikes by the European and American central banks, the Bank of Japan has always been unique in sticking to its ultra-loose policy stance, making theJPYunder pressure.JPYAgainst the US dollar fell another 0.3% to 144.47 JPYa seven-month low.JPYRecent weakness has prompted officials to sound the alarm regarding possible intervention. The last time the authorities tried to stop the demolition,JPYIt is around 145 once morest the US dollar.

Bank of Japan Governor Kazuo Ueda said once the central bank is fairly certain that inflation will slow for a while and re-accelerate next year, there are good reasons to change monetary policy.

“The only thing worth noting is that Ueda didn’t targetJPYThe weak trend in the United States countered, so if his stance is the policy of other G7 countries is causingJPYWeak dominant factor, then he does forJPYFurther weakness opens the door. “

EURDepreciated 0.45% to $1.0912, giving up the previous day’s gains;GBPIt fell more than 0.8 percent to $1.2637, a two-week low.

ECB President Christine Lagarde said at the meeting that the ECB has not yet seen enough evidence that underlying inflation has stepped on a downward trajectory. Bank of England Governor Bailey said it remains to be seen whether financial markets are correct in anticipating the number of rate hikes by the Bank of England.

In addition to Lagarde, Francois Villeroy de Galhau, one of the ECB policymakers, also said that although interest rates are now close to the level needed to bring inflation back to the 2% target, the central bank is keeping interest rates at a high level. The timing is more important than the level of interest rate itself.

As the U.S. dollar rises,Canadian DollarsIt once hit a two-week low during the session, and fell more than 0.5% to 1.3257 before the deadline Canadian dollarAgainst 1 dollar. Investor confidence in further rate hikes by the Bank of Canada next month has also weakened.

Money markets are pricing in a 55 percent chance of a rate hike following the Bank of Canada’s July 12 meeting, down from 64 percent ahead of this week’s inflation data. Canada’s annual inflation rate rose 3.4% in May, down from 4.4% in the previous month and the lowest since June 2021.

In terms of other major currencies,Australian dollarIt fell nearly 1.3% to below $0.66,new zealandIt also fell nearly 1.5 percent to $0.6073, both falling to three-week lows.

As of regarding 6:00 Taiwan time on Thursday (29th) Price:

dollar indexCall 102.9762. +0.4633%
EURExchange rate once morest US dollar (EUR/USD) 1 EURAgainst $1.0913. -0.4288%
GBPExchange rate once morest USD (GBP/USD) 1 GBPAgainst $1.2637. -0.8629%
Australian dollarExchange rate once morest US dollar (AUD/USD) 1 Australian dollarAgainst $0.6600. -1.2715% USD/USDCanadian Dollars (USD/CAD) exchange rate quoted 1 US dollar to 1.3253 Canadian Dollars. +0.4700% USD/USDJPY (USD/JPY) exchange rate quoted 1 US dollar to 144.36 JPY。+0.2361%
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