On the eve of the release of the minutes of the Federal Reserve’s December meeting,dollar indexIt rose to a two-week high on Tuesday (3rd),EURGerman inflation slowed down and weakened, andAustralian dollarAll fell by about 1%.
ICE, which tracks the dollar against six major currencies, in late U.S. trade dollar index (DXY) rose 1.01% to 104.57, after rising as high as 104.86 during the session, the highest since Dec. 20.
The Fed aggressively raised interest rates to fight inflation, drivingdollar indexIt rose 8 percent last year, its biggest full-year gain since 2015.
Investors’ attention this week is focused on the Fed’s December interest rate meeting minutes released on Wednesday (4th). After raising interest rates four times in a row by 3 yards, the Fed slowed the pace of rate hikes to 2 yards last month, but indicated that interest rates may remain high for a longer period of time.
Niels Christensen, chief analyst at Nordea, said: “The Fed maintains a hawkish stance, but the market is not buying it. The market is pricing in an interest rate cut by the end of this year, but we have not seen such a message from the Fed.”
EURIt once fell by 1.3% against the US dollar in intraday trading, and the subsequent depreciation was slightly restrained. Before the time of writing, it fell by nearly 1% to US$1.0561, falling at a three-week low.
The latest data showed that German inflation fell to single digits in December, which was lower than market expectations, and price pressures eased slightly, but part of it was also related to the German government subsidizing household energy bills.
Shaun Osborne, chief currency strategist at Scotiabank, said weaker-than-expected data could weigh on market sentiment, leading toEURUnderperformed, before fresh buying pressure emerged,EURThe short-term correction could extend to the $1.03-$1.04 range.
Still, he thinks the German inflation data is unlikely to prevent the European Central Bank (ECB) from implementing relatively aggressive tightening in the coming months.
JPYIt rose as high as 129.5 against the dollar in Asian trading hours JPYAgainst the U.S. dollar, it hit a seven-month high, then turned from rising to falling, and fell 0.12% to 130.94 by the time of writing JPY。
The Nikkei News reported on Saturday (31st) that the Bank of Japan is considering raising its inflation forecast in January, following the increase in December last year. 10-Year Treasury Bond YieldAfter the upper limit, the speculation that the central bank is about to change its ultra-loose stance has once again been strengthened.
GBPIt fell 0.6 percent to $1.1970, a more than one-month low.Sensitive to China’s economic outlookAustralian dollarwithsource of stringBoth fell more than 1%.Australian dollarIt traded at $0.6728 against the dollar,source of stringIt was at $0.6247 against the dollar.
After China loosened anti-epidemic measures, a wave of infections swept through factory production lines again, dragging down China’s factory activity continued to shrink in December and hit the largest decline in nearly three years.
As of about 6:00 on Wednesday (4th) Taiwan time Price:
- dollar indexCall 104.6625. +0.8826%
- EURExchange rate against US dollar (EUR/USD) 1 EURAgainst $1.0544. -1.1438%
- GBPExchange rate against USD (GBP/USD) 1 GBPAgainst $1.1990. -0.4318%
- Australian dollarExchange rate against U.S. dollar (AUD/USD) 1 Australian dollarAgainst $0.6730. -0.9857%
- US dollar againstCanadian Dollars (USD/CAD) exchange rate quoted 1 US dollar to 1.3655 Canadian Dollars。+0.6264%
- US dollar againstJPY (USD/JPY) exchange rate quoted 1 US dollar to 130.81 JPY。+0.1301%