〈New York Forex Market〉The U.S. dollar index hits a more than two-month low and the yen continues to rebound against the U.S. dollar | Anue Juheng-Forex

dollar indexIt fell to a more than two-month low on Monday (20th), continuing last week’s decline. Investors generally believe that the Federal Reserve (Fed) has completed its interest rate hike cycle and are looking forward to when it will start cutting interest rates.

In late New York trading, ICE tracks the dollar against six major currencies. dollar index (DXY) fell 0.45% to 103.45, its lowest level since September 1.

The U.S. Economic Council announced on Monday that leading economic indicators fell 0.8% in October, the 19th consecutive month of decline, and the decline was higher than market expectations of 0.7%. With recent data showing that economic and inflationary pressures are moderating, the market has ruled out the possibility of further interest rate hikes by the Fed.

According to CME Group’s FedWatch tool, the market Fed is paying attention to when it will start to cut interest rates, and currently expects that the probability of cutting interest rates by at least 1% in May is more than 50%.

Joseph Trevisani, senior analyst at FXStreet.com, said: “Whether it’s from a credit, stock or foreign exchange perspective, the market believes that the Fed has completed raising interest rates, but they are unwilling to say so. We all know this, we have seen it in the past, I’ve heard of it too.”

However, recent comments from some Fed officials have not ruled out the possibility of further interest rate hikes if economic data changes. Richmond Fed President Thomas Barkin said on Monday that inflation may remain stubborn, forcing the central bank to keep interest rates high for longer than investors currently expect.

Compared with the weakening trend of the US dollar,EURIt rose more than 0.2% to $1.0939, and once hit the highest level since August 15, as the market expected that the European Central Bank (ECB) would continue to maintain the interest rate hike cycle after the Fed ends its interest rate hikes.

In addition, Moody’s recently unexpectedly raised the outlook on Italy’s sovereign credit rating from “negative” to “stable” with a rating of Baa3, while also raising Portugal’s debt rating by two notches to A3.

GBPIt hit a two-month high intraday, rising nearly 0.4% to $1.2505 at press time.JPYIt also had a strong trend last week, rising nearly 0.8% to 148.43 JPYAgainst the dollar, it was at about a six-and-a-half-week high.

As of approximately 6:00 Taiwan time on Tuesday (21st), price:

• dollar indexReport 103.4865. -0.3283%
• EURExchange rate quote against the US dollar (EUR/USD) 1 EURAgainst US$1.0941. +0.2566%
• GBPExchange rate quote against the US dollar (GBP/USD) 1 GBPagainst US$1.2505. +0.3692%
• Australian dollarExchange rate quote against the US dollar (AUD/USD) 1 Australian dollaragainst USD 0.6557. +0.6601%
• USD vs.Canadian Dollars (USD/CAD) exchange rate is quoted at 1.3725 per US dollar Canadian Dollars。+0.0656%
• USD vs.JPY (USD/JPY) exchange rate was quoted at 148.41 per US dollar JPY。-0.7822%