dollar indexThe trend on Wednesday (18th) was volatile, hitting a seven-month low during the session. A series of data released by the United States earlier strengthened expectations for the Federal Reserve (Fed) to slow down the pace of tightening. However, after Fed officials made hawkish remarks, market risk sentiment deterioration,DXY At noon, it regained its downward trend.
U.S. retail sales fell 1.1% in December on Wednesday, the biggest drop in more than a year, while a separate report showed producer prices fell 0.5% in December from the previous month after rising 0.2% in November , manufacturing output fell more than expected, down 1.3% month on month.
ICE, which tracks the dollar against six major currencies, in late U.S. trade dollar index (DXY) was almost flat, inching up 0.01 percent to 102.40. After the release of a series of economic data,DXY It fell by about 0.8% at one point to its lowest level since May last year, before resuming its downward trend.
Juan Perez, head of trading at Monex USA, said U.S. PPI and retail sales data for December showed continued declines in inflation, following last week’s consumer price index (CPI) data. The Fed hopes that the economy will slow down, so that demand will cool down. No demand means that prices will fall, and the Fed can be less hawkish and reduce interest rate hikes.
Joe Manimbo, a senior market analyst at Convera, believes that the dollar will continue to fall due to the slowdown in US inflation and the Fed’s policy outlook. As long as the market digests the risk of the Fed starting to cut interest rates later this year, the dollar may maintain a downward trend.
However, hawkish comments from Fed officials on Wednesday dampened market expectations that the central bank will soon end its tightening policy.
Cleveland Federal Reserve Bank President Loretta Mester said the Fed would have to raise interest rates a little above the 5% to 5.25% range to curb inflation, while St. Louis Fed President James Bullard Bullard also called for the policy rate to be raised above 5% as soon as possible.
As the dollar weakens,GBPIt rose as much as 1.2% during the session, then pared gains and rose 0.5% to $1.2344 by the time of writing. The UK announced earlier that the annual growth rate of CPI in December was 10.5%, the lowest in nearly three months, and the annual growth rate of core CPI remained unchanged at 6.3%.
EURIt rose nearly 1% during the day and reached an eight-month high. Before the deadline, it rose 0.06% to $1.0794.
In response to news that the European Central Bank (ECB) may further slow down the pace of tightening in March, ECB Council member Francois Villeroy de Galhau believes that it is too early to speculate on the central bank’s actions in March.
After the Bank of Japan (BOJ) announced to keep the yield curve control (YCC) policy unchanged,JPYAgainst the US dollar, it fell as much as 2.7% on Wednesday, and recovered some of the losses before the deadline, but still fell 0.6% to 128.87 JPYAgainst 1 dollar.
The Bank of Japan unexpectedly dropped 10-Year Treasury Bond YieldThe cap was raised from 0.25% to 0.5%, which shocked the market, and investors speculated that the central bank may adjust or even cancel the yield curve control policy.
“The market was desperate to see something special, to see the BOJ get tougher so it could start putting JGBs in and profiting from it, but that didn’t happen,” Perez said.
Australian dollarFrom rising to falling, it once rose to the highest since August last year in the intraday session, and fell 0.66% to $0.6941 before the time of writing.new zealandrose 0.3 percent to $0.6443,
As of about 6:00 Taiwan time on Thursday (19th) Price:
- dollar indexAt 102.39. -0.0037%
- EURExchange rate against US dollar (EUR/USD) 1 EURAgainst $1.0795. +0.0649%
- GBPExchange rate against USD (GBP/USD) 1 GBPAgainst $1.2342. +0.4395%
- Australian dollarExchange rate against U.S. dollar (AUD/USD) 1 Australian dollarAgainst $0.6937. -0.7014%
- US dollar againstCanadian Dollars (USD/CAD) exchange rate quoted 1 US dollar to 1.3496 Canadian Dollars。+0.7916%
- US dollar againstJPY (USD/JPY) exchange rate quoted 1 US dollar to 128.82 JPY。+0.5228%