© Reuters. Foreign exchange European market: The dollar rebounded slightly, US inflation pressure still exists, focus on PPI within the day
Investing.com – In the European market on Wednesday (15th), the U.S. dollar rebounded slightly. After the U.S. February inflation report was released on Tuesday, people once again adjusted their views on the path of U.S. interest rates.
According to the report, it fell to 6.0%, but the core CPI monthly rate continued to rise, causing people’s unease. The rise in core inflation means that although the banking crisis broke out, the Fed is still facing great inflationary pressure.
U.S. two-year Treasury yields, which are highly sensitive to short-term interest rates, rebounded after the data, as the market generally believes that the Fed will continue at its meeting next week, especially if it does not raise interest rates, the market may panic instead.
As of 17:00 Beijing time (05:00 am Eastern Time), the dollar, which measures the trend of the dollar against six major currencies on a trade-weighted basis, rose 0.08% to 103.302; 103.00.
(15-minute chart of US dollar index)
The benchmark U.S. Treasury yield was at 3.668%, at 3.9226%.
Tonight, the U.S. will also announce the U.S. and U.S. economic policy, which is also expected to be closely watched by investors to assess the impact on the Fed’s policy outlook.
In Europe, it was basically flat, slightly up 0.01% to 1.0733, after rising to 1.0760 earlier, the highest level since mid-February. It followed reports that the ECB would stick to Thursday’s plan, with news that ECB officials still expect inflation in the euro zone to run above its 2 percent target in 2025.
The February inflation data of France, the second largest economy in the euro zone, released today also showed that the country’s CPI rose by 1.1% month-on-month in February, much higher than expected, and also rose to 7.3%.
Against the dollar, it was down 0.05% at 1.2152. The UK government is due to unveil its annual budget tonight and is expected to focus on measures to improve labor supply. The U.K. is currently the worst-performing economy among the G7 countries, largely due to a lack of labor supply and an increase in early retirement following the pandemic.
In addition, it rose 0.37% to 6.8973; rose 0.25% to 6.8989. Reported at 2.888%.
The data released today showed that it was worse than expected, but Weihe performed positively.
[This article is from Yingwei Caiqing Investing.com, to read more, please log in to cn.investing.com or download Yingwei Caiqing App]
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Compiler: Liu Chuan
