After the European Central Bank (ECB) announced the interest rate decision, the hawkish stance was onceEURIt pushed to a six-month high before retreating.GBPThe single-day drop of nearly 2% was the biggest in six weeks, as the market believed that a slowdown in the Bank of England’s tightening pace may make the terminal interest rate lower than originally expected.
Even though Federal Reserve (Fed) Chairman Jerome Powell (Fed) Chairman Jerome Powell’s tough tightening stance at the previous day’s meeting on interest rates raised concerns regarding the US economy falling into recession, the dollar was still unable to rebound on Wednesday (14th) and ended in black .
However, the dollar strengthened as risk sentiment soured as U.S. stocks tumbled. In late New York trading on Thursday (15th), ICE, which tracks the U.S. dollar once morest six major currencies dollar index (DXY) rose 0.83 percent to 104.63.
On the economic data front, U.S. retail sales fell more than expected in November, while the number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting the labor market remains tight. After the release of the report, the dollar pared its gains for a while before pulling higher.
Another data showed that manufacturing activity in the mid-Atlantic region of the United States shrank for four consecutive months. The Philadelphia Fed manufacturing index reported -13.8 in December, but factory owners were more optimistic regarding the outlook and said that inflationary pressures have eased significantly.
The European Central Bank announced on Thursday that it will raise interest rates by 2 yards, which is the fourth consecutive rate hike. Although the rate is smaller than the first two meetings, the ECB believes that in the case of still high inflation risks, further substantial interest rate hikes are needed in the future. At the same time, it announced The balance sheet reduction plan will be launched in March next year.
After ECB President Christine Lagarde signaled further policy tightening,EURIt once stood above the $1.07 mark, hitting a six-month high, and then pared gains, falling 0.5% to $1.0626 by the time of writing.
Marc Chandler, chief market strategist at Bannockburn Global Forex, believes Lagarde’s attitude is tougher than Powell’s yesterday,EURThe trend once morest the dollar may be related to investor expectations before and following the ECB meeting, and the dollar also benefited from the heightened risk aversion sentiment before the ECB meeting.
Edward Moya, senior market analyst at Oanda, said that the inflation outlook of the European Central Bank is quite strong. Although the Fed said it will continue to raise interest rates until it beats inflation, he believes that traders are increasingly convinced that the Fed is close to the end of the tightening cycle.
After the Bank of England (BOE) announced that it would raise interest rates by less than the previous month,GBPIt plunged nearly 2 percent to $1.2177, its biggest one-day drop in six weeks. Money market traders have trimmed bets on a rate hike from the Bank of England, now expecting the rate to rise to 4.59% in August, down from 4.61% before the decision.
Economists expect Britain to slip into recession for most of next year, which might help ease inflationary pressures. Jeremy Stretch, director of foreign exchange strategy at CIBC, said that in turn, this means that the Bank of England’s terminal interest rate is lower than the level absorbed by the market.
Valentin Marinov, foreign exchange strategist at Credit Agricole Bank, believes that as investors adjust their interest rate expectations for next year,GBPLikely to extend the recent correction.
Also on Thursday are the central banks of Norway and Switzerland.
The Norwegian central bank raised its benchmark interest rate by 1 yard to a 13-year high, the Norwegian krone remained lower, and the US dollar rose 1.6% to 9.8721 crowns once morest the crown; USD/CHF still rose 0.5% to 0.9285 CHF despite raising interest rates.
Commodity currencies plummeted across the board,Australian dollarandsource of stringBoth fell to a new low of more than a week,Australian dollarIt fell 2.4% to $0.6696,source of stringThe greenback fell 1.8 percent to $0.6341, with the dollarCanadian dollarUp 0.9% to 1.3669 Canadian dollar。
As of regarding 6:00 Taiwan time on Friday (16th) Price:
- dollar indexCall 104.6332. +0.9706%
- EURExchange rate once morest US dollar (EUR/USD) 1 EURAgainst $1.0622. -0.5431%
- GBPExchange rate once morest USD (GBP/USD) 1 GBPAgainst 1.2176 yuan. -2.0198%
- Australian dollarExchange rate once morest U.S. dollar (AUD/USD) 1 Australian dollarAgainst 0.6698 yuan. -2.4042%
- US dollar once morestCanadian Dollars (USD/CAD) exchange rate quoted 1 US dollar to 1.3670 Canadian Dollars。+0.9303%
- US dollar once morestJPY (USD/JPY) exchange rate quoted 1 US dollar to 137.82 JPY。+1.7572%
