Investors turn to Russia-Ukraine tensionsDollarhedging,DollarIt was at a two-week high against a basket of currencies on Tuesday (25th),EURIt traded lower and hit a one-month low.The U.S. Federal Reserve is set to announce details on monetary policy tightening on Wednesday, also supportingDollar。
Late New York, TrackDollarICE against six major currencies DollarThe index (DXY) rose 0.097%, paring some of its earlier gains.
EURDepreciated 0.23% to 1.1297 Dollar, hedgingJapanese YenagainstDollarAppreciated 0.01% to 113.92 Japanese Yen。
Western leaders are accelerating preparations for a moment when Russia may take military action against Ukraine. At present, the United States has 8,500 troops on alert, and if the situation escalates, it will be deployed to Europe, which is of great concern to Russia.
NATO said on Monday that the military was on standby and had sent more warships and warplanes to Eastern Europe.
Credit Suisse head of foreign exchange strategy Alvise Marino said tensions in UkraineEURand European energy supplies are at risk.DollarRelatively strong, the main support comes from the Fed’s tightening policy.
“The market was expecting one rate hike from the Fed in 2022, but now it’s expecting four rate hikes, driving theDollarhigher for the past three months. The trend has accelerated somewhat since last Wednesday, as broader equity markets weakened and risk appetite subsided. “
With other central banks also preparing to raise interest rates, Marino said,DollarVolatility has subsided, and the S&P 500’s Volatility Index (VIX) has more than doubled this year.
Marsharll Gittler, head of investment research at BDSwiss Holdings, said:DollarThe strength of the currency highlights that the currency is a safe-haven currency after all.
Analysts were mixed on the Fed’s meeting, with Deutsche Bank saying there could be a hawkish surprise in the coming months, with six or seven rate hikes possible this year. However, ING believes that if the Fed’s move to shrink its balance sheet is enough to significantly facilitate the process of currency normalization, the number of interest rate hikes may be reduced.
The trend of Fed funds futures has fully digested the possibility that the Fed will raise interest rates by 25 basis points in March and three more times this year.
As the decline in U.S. stocks converged in late trading,bitcoinrebounded 0.78% to 37010 Dollar，etherUp 0.47% to 2454.91 Dollar。
As of Wednesday (26th) around 6:00 Taiwan time Price: