Markets are headed for key U.S. inflation data this week, with risk appetite weakening late in U.S. stocks.US dollar indexA modest rise on Monday (6th), the Bank of Japan governor’s unwavering easing stanceJapanese YenOnce once more depreciated to a 20-year low.
In late New York trade, ICE, which tracks the dollar once morest six major currencies US dollar index (DXY) rose 0.26% to 102.41.
The Federal Reserve (Fed) will announce its June interest rate decision next week, which is widely expected to raise interest rates by 50 basis points (2 yards). Ahead of the central bank meeting, investors will first look to Friday’s consumer price index (CPI) for any clues regarding the path of future rate hikes.
Joe Manimbo, senior analyst at Western Union Business Solutions, said: “Risk appetite is setting the tone for the market ahead of this week’s major event (the CPI report) that will really affect the central bank’s policy expectations this year. ”
Manimbo believes that the market has definitely factored in the rate hike expectations for next week and July, but still has no clue regarding September. To observe the policy trends in the next few months, this week’s CPI report and next week’s Fed meeting Even the Jackson Hole annual meeting of global central banks will be the key event to know if rate hikes are paused in September.
EURAgainst the dollar, it was down 0.25% at $1.0692.
The European Central Bank (ECB) will be the first to hold an interest rate meeting this week. BofA Securities now expects the ECB to raise rates by 150 basis points this year, including 50 basis points in July and September.
GBPThe U.S. dollar extended its upward trend, rising 0.37% to $1.2531. British Prime Minister Boris Johnson passed a vote of no confidence by Conservative MPs on Monday. Although he succeeded in retaining the party leader and the prime ministership, Johnson’s government status was inevitably shaken.
GBPIt is the third worst performing currency among the G10 currencies this year, followingJapanese Yenand Swedish Krona.
Alan Ruskin, chief international strategist at Deutsche Bank, said the vote showed that J&J’s leadership had been shaken, raising the risk of a cabinet resignation in the coming weeks, and a victory for J&J was unlikely to affect investors in the long run. rightGBPstrategy.
After Bank of Japan Governor Haruhiko Kuroda made dovish remarks,Japanese YenDown 0.79% once morest the dollar to 131.89 Japanese Yenhit a new 20-year low.
Kuroda Haruhiko said on Monday that Japan’s economy is still in the stage of recovery from the epidemic, and the central bank’s priority is to support the economy through strong monetary measures, and it is definitely not the time to tighten policy.
AUDIt fell 0.18% to $0.7192 once morest the greenback. The Reserve Bank of Australia will hold an interest rate meeting on Tuesday, and the market is widely expected to raise interest rates once more.
As of Tuesday (7th) Taiwan time regarding 6:00 Price:
- US dollar indexReport 102.4071. +0.2191%
- EURExchange rate once morest the US dollar (EUR/USD) at 1 EURAgainst $1.0694. -0.2332%
- GBPExchange rate once morest the US dollar (GBP/USD) at 1 GBPAgainst $1.2530. +0.3604%
- AUDExchange rate once morest the US dollar (AUD/USD) at 1 AUDAgainst $0.7192. -0.1943%
- dollar once morestCanadian Dollars (USD/CAD) exchange rate at 1.2577 per US dollar Canadian Dollars。-0.1350%
- dollar once morestJapanese Yen (USD/JPY) exchange rate is quoted at 131.88 US dollar Japanese Yen。+0.7795%
