The U.S. Federal Reserve (Fed) raised interest rates by 3 yards (75 basis points) in two consecutive meetings, in line with market expectations. In response to the rate hike in September that the market is concerned regarding, Fed Chairman Powell said whether to implement an extraordinary rate hike once more will Depending on the economic data, the remarks led to expectations that the pace of interest rate hikes may slow, causing the dollar to slip once morest major currencies on Wednesday (27th).
The dollar climbed immediately following the decision was made, but soon turned from red to black due to Powell’s dovish remarks. U.S. stocks rose in midday trading and U.S. bond yields fell.
ICE, which tracks the dollar once morest six major currencies, was late in New York US dollar index (DXY) fell 0.756% to 106.310, its worst loss since July 19.
Investors’ bets on a 2-yard rate hike (50 basis points) in September rose to 60.9%, up from 50.7% on Tuesday, and a 3-yard chance of a rate hike from 41.2%, according to the CME Group’s FedWatch tool. dropped to 35.2%.
“This statement is in line with what they’ve said in past meetings … neutral rates are now in place, and Fed officials think they need to keep raising rates to restrictive levels,” said Marvin Loh, senior global markets strategist at State Street. , the dollar should appreciate because of this hawkish stance, but that’s all to be expected and has largely been priced in this month.”
The dollar rose to a 20-year high of 109.29 earlier this month on bets that the Fed would raise interest rates sharply, but then eased as data showed the possibility of a recession.
However, U.S. data on Wednesday eased recession fears, with the trade deficit narrowing sharply in June, exports jumping, and non-defense capital goods excluding aircraft — a proxy for business spending plans — rose 0.5% in June. The U.S. is to report second-quarter gross domestic product (GDP) on Thursday.
EURRecovering most of the previous day’s losses, it rose 0.97% to $1.0212, its biggest gain in two weeks. Despite this, Russia has further reduced the supply of Nord Stream 1 gas, so that Europe is still unable to escape the fear of economic recession.
JPMorgan predicts that the energy crisis, coupled with political turmoil in Italy, willEURThe region slipped into a mild recession early next year and limited the European Central Bank’s (ECB) rate hike plans.
JPYAppreciated 0.26% to 136.58 JPY once morest 1 dollar,GBPIt rose 1.25 percent to $1.2175.
cryptocurrencyaspect,bitcoinIt rose 8.65% to $22,792.02 on Wednesday.
As of Thursday (28th) at regarding 6:00 Taiwan time Price:
- US dollar indexReported at 106.4855. +0.03%
- EURExchange rate once morest the US dollar (EUR/USD) at 1 EURExchange for $1.0196. -0.03%
- GBPExchange rate once morest the US dollar (GBP/USD) at 1 GBPExchange $1.2153. -0.02%
- AUDExchange rate once morest the US dollar (AUD/USD) at 1 AUDConvert to $0.6993. +0.03%
- dollar once morestCanadian Dollars (USD/CAD) is quoted at 1.2822 for 1 US dollar Canadian Dollars。-0.02%
- dollar once morestJapanese Yen (USD/JPY) exchange rate quoted at 136.55 USD Japanese Yen。-0.01%
