U.S. job vacancies in March fell, the dollar ended, and the market focused on the Fed's decision

2023-05-02 21:58:38

After U.S. job vacancies fell to a near two-year low in March,dollar indexOn Tuesday (2nd), it fell, ending its four-day winning streak. At the same time, investors turned their attention to the Federal Reserve (Fed) decision-making meeting.

ICE, which tracks the dollar against six major currencies, in late U.S. trade dollar index (DXY) fell 0.23 percent to 101.92.DXY It rose to a three-week high during the session and pulled back after job vacancies data.

The United States announced that the number of JOLTs job vacancies fell to 9.59 million, falling for three consecutive months and hitting a record low in nearly two years. Some signs of weakness in the labor market may help the Fed fight inflation; another data on the same day showed that the United States in March Factory orders rose 0.9%, ending two consecutive months of decline, but worse than market expectations.

The release of the economic data comes as the Fed kicks off a two-day policy meeting on Tuesday, with investors trying to gauge whether the Fed will signal a pause in rate hikes or the need for further hikes as inflation remains stubbornly high when the meeting ends on Wednesday.

“The big question is whether the Fed is signaling that policy is already tight enough, or signaling that it won’t call for further tightening,” said Edward Moya, senior market analyst at Oanda.

As the dollar fell,EURIt edged up 0.24% to US$1.0999, ending its three consecutive declines.

in the data displayEURAfter regional banks are tightening lending and core CPI unexpectedly slowed,EURIt fell briefly during the session as it raised the possibility that the European Central Bank (ECB) would raise interest rates by a smaller margin on Thursday (4th).

The market originally expected the ECB to raise interest rates by 2 yards this week. Since mid-March, the narrowing of interest rate differentials between Europe and the United States has continued to driveEURstrengthen.

After the Reserve Bank of Australia (RBA) unexpectedly raised interest rates by 1 yard and signaled that further tightening may be possible,Australian dollarIt climbed nearly 1.4 percent intraday to $0.6717, its highest since April 21, before paring gains to nearly 0.6 percent at $0.6663 by press time.

RBA unexpectedly raised interest rates, bringing Australia’s cash rate to 3.85%, the highest in 11 years.

Ray Attrill, head of foreign exchange strategy at National Australia Bank (National Australia Bank), said: “RBA now believes that the cash rate must reach 4% to stop. Due to the strong data since April, the central bank may indeed raise interest rates again, but whether it will In June, that remains to be seen.”

JPYAfter hitting a new low since March 8, it rebounded from a nearly two-month low and rose 0.7% to 136.50 by the time of writing JPYAgainst 1 dollar.

A renewed sell-off in U.S. regional banks following the collapse of First Republic Bank, which was taken over by JPMorgan, has prompted calls for the Fed to pause further rate hikes to avoid lagging effects on the economy.

Concerns about the stability of the U.S. financial systemcryptocurrencyGet a boost, deadline,bitcoinrose nearly 3% to $28,647.8,EthereumIt also rose 2.8 percent to $1,817.2.

Joel Kruger, market strategist at LMAX Group, said pressures related to the fragility of the banking sector have prompted an active focus on the value of holding decentralized currencies. “The dollar is generally weaker amid expectations of less hawkish Fed rhetoric at this meeting, which is no longer supported by interest rate differentials and may in turn support crypto assets.”

As of about 6:00 on Wednesday (3rd) Taiwan time Price:

dollar indexCall 101.9544. -0.1604%
EURExchange rate against US dollar (EUR/USD) 1 EURAgainst $1.0998. +0.2278%
GBPExchange rate against USD (GBP/USD) 1 GBPAgainst $1.2469. -0.1761%
Australian dollarExchange rate against US dollar (AUD/USD) 1 Australian dollarAgainst $0.6661. +0.5131%
US dollar againstCanadian Dollars (USD/CAD) exchange rate quoted 1 US dollar to 1.3620 Canadian Dollars。+0.5983%
US dollar againstJPY (USD/JPY) Exchange rate quoted 1 US dollar to 136.54 JPY。-0.6693%