The much-anticipated Jackson Hole annual meeting of global central banks took place a few days ago. Federal Reserve Chairman Jerome Powell delivered a speech on Friday (26th), emphasizing his firm stance against inflation, driving theUS dollar indexIt rose sharply, and the weekly line closed in the red.AUD、GBPslumped,JPYIt hit a new low in more than a month.
ICE, which tracks the dollar against six major currencies, is late in New York US dollar index (DXY) rose 0.34% to 108.84, up 0.6% for the week.
Inflationary pressures appeared to have eased after data showed the U.S. personal consumption expenditures (PCE) price index barely rose in July.DXY Intraday dips, Powell’s hawkish speech at central bank annual meeting spurred DXY Stronger, reversing earlier decline.
Powell said the U.S. economy will need to remain in austerity policy for a while until inflation is brought under control, because there is no quick way to deal with high prices, which means slower economic growth, weaker employment ahead, and more pressure on households and consumers. Businesses bring some pain.
Ryan Detrick, chief market strategist at Carson Group, said: “For now, at least, hopes of a dovish turn have been dashed. Powell needs to see signs of improvement in inflation data for more than a month, and he has made it clear that further tightening will continue ahead. policy.”
Powell, however, did not say where rates might rise before the end of the policy tightening, saying only that he would raise rates as high as possible to bring inflation back to the central bank’s 2 percent target.
Joe Manimbo, a market analyst at Convera, said: “Overall, Powell is indeed a hawk, but he has not exceeded market expectations. Whether it will raise rates next month by 2 yards or 3 yards is still inconclusive.” He also pointed out that 9 August employment and inflation data, released ahead of the monthly policy meeting, will now be key to the Fed’s decision on how much to raise interest rates.
Fed funds futures traders estimated a 60 percent chance of a three-size rate hike in September, up from 45 percent before the speech, and a 40 percent chance of a two-size rate hike.
Ball speech helps boost dollar, drags downGBPIt fell to its lowest level this week during the session, down 0.82% to $1.1740 by the time of writing, and was down nearly 0.8% for the week.
Investors are also concerned about the impact of soaring home energy costs. Ofgem has sharply raised domestic energy prices, which will increase by 80% from October to an average of 3,549 per year GBPunless the government steps in, millions of households will face fuel shortages and businesses will struggle.
“Leveraged funds have increased significantly in recent weeks,” said Derek Halpenny, head of research at MUFG.GBPOne of the possible reasons for this is that they believe the new government will act to protect British families, but it’s a risky bet given the uncertainty over soon-to-be Prime Minister Liz Truss ) plan to do it. “
EURAgainst the U.S. dollar, it broke through the parity level, rising to nearly $1.01 at the highest level, and then pulled back, down 0.14% to $0.9961 by the time of writing, and fell 0.7% this week.
Even as recession risks loom, some European Central Bank (ECB) officials still hope to raise interest rates sharply by 3 yards next month, but opponents believe that a recession may help curb inflation well above the central bank’s target level, and advocate maintaining a steady rise. interest.
AUDAgainst the greenback, it was down 1.26% at $0.6890,JPYIt also fell nearly 1%, and the exchange rate against the dollar fell to a more than one-month low, at 137.75 JPY。
As of Saturday (27th) Taiwan time about 6:00 Price:
- US dollar indexReported at 108.8209. +0.3773%
- EURExchange rate against the US dollar (EUR/USD) at 1 EURAgainst $0.9961. -0.1404%
- GBPExchange rate against the US dollar (GBP/USD) at 1 GBPAgainst $1.1740. -0.8027%
- AUDExchange rate against the US dollar (AUD/USD) at 1 AUDAgainst 0.6890 yuan. -1.2611%
- dollar againstCanadian Dollars (USD/CAD) exchange rate at 1.3034 per US dollar Canadian Dollars。+0.8433%
- dollar againstJPY (USD/JPY) exchange rate is quoted at 137.75 per US dollar JPY。+0.9379%