“Dollar Index Hits 10-Day Low as Market Locks in Last Rate Hike Expectations”

Investing.com – In the European market on Tuesday (25th), the U.S. dollar rose slightly from intraday lows, and the euro was steady. Traders are waiting for the monetary policy meetings of several central banks next week, but some people expect the European Central Bank’s stance to be more aggressive than the Fed’s hawks.

As of 17:15 Beijing time (05:15 am ET), the dollar, which measures the dollar’s trade-weighted strength against six major currencies, was up 0.05% at 101.40; Ten-day low.

The benchmark U.S. Treasury yield was at 3.447%, at 3.7945%.

A quarter-point rate hike is widely expected next week, although expectations are also growing that the Fed will start cutting rates later this year.

Recent economic data points to a slowdown in the US economy, while overnight news of a plunge in deposits at First Republic Bank (NYSE: ) also highlighted the fragility of the US banking system.

Investors also need to pay close attention, as the U.S. economy is expected to grow at a slower pace compared to the previous quarter. However, the finale of this week is the release of the Fed’s favorite inflation indicator on Friday (28th), and if the data does not surprise with a large surprise, it will not change the market’s dovish view on the outlook.

ING analysts said: “Unless Friday’s U.S. core PCE inflation rate in March is significantly higher than the consensus forecast of 0.3%, the expectation of the Fed’s last rate hike seems to be locked in, and we are more concerned about whether the dollar will significantly increase. The rebound is skeptical.”

It was unchanged at 1.1041. The European Central Bank is now widely expected to raise interest rates by a massive 50 basis points at its meeting next week.

A slight rise was reported earlier, adding to the fact that Europe’s largest economy managed to dodge adeclineexpectations.

In addition, April inflation in the euro zone’s major economies, due later this week, is likely to remain elevated.

All this indicates that interest rates will be raised next week, and the bank member Isabel Schnabel told the media that it is not impossible to raise interest rates by 50 basis points, but it depends on the data.

It fell 0.07% to 1.2473, retreating from a 10-day high hit earlier. Rate hikes are expected, after reaching 10.1 percent, driven by the highest food inflation in 40 years.

It fell 0.42% to 0.6668. It fell 0.11% to 134.07. The governor will hold the first interest rate meeting of his career this week.

It rose 0.27% to 6.9149 and rose 0.37% to 6.9258. Reported at 2.836%.

[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