(New York City) Powell casts off expectations of a 3-yard rate hike, the dollar falls to a one-week low |

The Federal Reserve (Fed) announced on Wednesday (4th) that it would raise interest rates by 2 yards and start quantitative tightening (QT) from June. Chairman Powell emphasized in the post-meeting press conference that it will actively suppress inflation, but downplayed the next rate hike. The possibility of 3 yards caused the dollar to fall sharply once morest a basket of major currencies.

ICE, which tracks the dollar once morest six major currencies, was late in New York US dollar index (DXY) fell to 102.62 following hitting a one-week low of 102.48 during the session.

Powell said in a news conference that the Fed is not actively considering a 75 basis point (3 yards) rate hike, and the next few meetings will consider a similar increase to May, which is a 50 basis point (2 yards).

Mazen Issa, senior currency strategist at TD Securities in New York, said: “The market was pricing in a 50% chance of a 75 basis point rate hike by July, so everyone was concerned regarding whether a three-point rate hike was an option on the table, but Powell basically once morest that.”

In response to QT, the Fed said it would shrink its balance sheet by $47.5 billion per month (including $30 billion in Treasuries and $17.5 billion in mortgage-backed securities) in the three months beginning in June, and then by as much as $950 in September. One hundred million U.S. dollars.

In addition, the United States released the ADP employment report on Wednesday, known as the “small non-farm”, which showed that private employers hired 247,000 people in April, the least in two years, due to lack of work and rising costs. The US Labor Department will release its April nonfarm payrolls report on Friday.

Investors are evaluating,DXY After hitting a 20-year high last week, is there room for further upside as much of the Fed’s hawkish stance is already priced in.

But the Fed is still far more hawkish than other major countries. Europe, for example, is also grappling with weak economic growth and disruptions to energy supplies following sanctions on Russian oil.

EURAgainst the greenback, it climbed 0.82% to $1.0606.

Investors have continued to pour funds into safe-haven assets recently to provide support for the dollar as investors worry that China’s epidemic prevention blockade will affect global economic growth and exacerbate supply chain problems.

Beijing closed many subway stations and bus routes on Wednesday, and many public places still imposed epidemic prevention restrictions, hoping to prevent Beijing from following the footsteps of more than 10 million people in Shanghai, which have been locked down for more than a month.

AUDIt has outstanding performance for two consecutive days, with an appreciation of 2.03% to US$0.7241, continuing to gain momentum from the decision of the Reserve Bank of Australia (RBA, central bank) to unexpectedly raise interest rates sharply. Australia started raising interest rates for the first time in 10 years on Tuesday, up 25 basis points (1 yard) to 0.35%, beating market expectations for an increase of 15 basis points.

As of Thursday (5th) at regarding 6:00 Taiwan time Price:

• US dollar indexReported 102.5124. -0.92%
• EURExchange rate once morest the US dollar (EUR/USD) at 1 EURConvert to $1.0623. +0.96%
• GBPExchange rate once morest the US dollar (GBP/USD) at 1 GBPConvert to $1.2632. +1.10%
• AUDExchange rate once morest the US dollar (AUD/USD) at 1 AUDConvert to $0.7253. +2.21%
• dollar once morestCanadian Dollars (USD/CAD) is quoted at 1.2742 for 1 US dollar Canadian Dollars。-0.74%
• dollar once morestJapanese Yen (USD/JPY) exchange rate quoted at 129.18 USD Japanese Yen。-0.71%

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