Earlier U.S. jobless claims data fell further last week and manufacturing activity also remained solid in August, adding more flexibility for the Federal Reserve to raise interest rates next month.US dollar indexOn Thursday (1st), it bounced to a new 20-year high and continued to move towards 110.EUR,Australiasource of stringsuch as major currencies under pressure,JPYAgainst the dollar, it fell below the 140 mark for the first time in 24 years.
ICE, which tracks the dollar once morest six major currencies, is late in New York US dollar index (DXY) rose 0.89% to 109.67, reaching a 20-year high, and the intraday high was close to 110 at 109.98.
The U.S. reported on Thursday that initial jobless claims fell to a two-month low last week and layoffs also declined in August, suggesting labor demand remains strong. In addition, led by the rebound in employment and new orders, the ISM manufacturing index continued to grow steadily in August, and the price index used to measure price pressure fell to a new low in more than two years, strengthening the market’s view that inflation has peaked.
The odds of the Fed raising interest rates by 3 yards next month continue to rise on solid economic data.Fed funds futures traders are pricing in regarding a 77.1 percent chance of a three-point rate hike next month, which would also put the 10-Year U.S. Treasury YieldPushed to a 2-month high.
Edward Moya, a market analyst at Oanda, said: “With the safe-haven flows from global economic weakness, coupled with a strong U.S. economy that continues to pave the way for aggressive Fed action, it’s no surprise that the U.S. dollar is able to hit new all-time highs.” He believes that, This might in turn cause more pain for the European currency.
Next, market attention will turn to Friday’s non-farm payrolls report for August, which will be one of the key figures in Fed officials’ assessment of monetary policy, and a strong performance in employment is expected to attract more inflows into the dollar.
Analysts at Generali Insurance Asset Management are bullish on further upside for the U.S. dollar, driven by a slowing global economy, particularly the energy crisis in Europe.
The world’s major currencies are generally hit by a strong dollar,EURAgainst the U.S. dollar, it fell below parity once more, slumping more than 1% to $0.9946.GBPIt was down 0.65% at $1.1540, a 2-1/2-year low.
JPYIt also fell 0.8% to 140.17 once morest the dollar JPYthe lowest since 1998.
Sosuke Nakamura, a strategist at JPMorgan Chase Japan, pointed out that even if today’s price action occurred following the U.S. overnight rate hike, the main driver is still the U.S.-Japan interest rate differential.JPYFuture movements will depend on the performance of US interest rates.
Risk-sensitive investors rush to safe-haven assetsAUDandsource of stringsold off at the same time,AUDfell 0.8% to $0.6785,source of stringIt fell 0.6 percent to $0.6976, the lowest since mid-July.
As of Friday (2nd) Taiwan time regarding 6:00 Price:
- US dollar indexReported at 109.6625. +0.8793%
- EURExchange rate once morest the US dollar (EUR/USD) at 1 EURAgainst $0.9945. -1.0448%
- GBPExchange rate once morest the US dollar (GBP/USD) at 1 GBPAgainst $1.1540. -0.6372%
- AUDExchange rate once morest the US dollar (AUD/USD) at 1 AUDAgainst 0.6785 yuan. -0.8186%
- dollar once morestCanadian Dollars (USD/CAD) exchange rate at 1.3156 per US dollar Canadian Dollars。+0.2286%
- dollar once morestJPY (USD/JPY) exchange rate is quoted at 140.20 per US dollar JPY。+0.8125%
