© Reuters. DXY not far from four-week highs: Surging ADP highlights strong jobs, Fed more difficult to turn dovish
Investing.com – In the European morning session on Thursday (3rd), the US dollar rose, continuing the positive trend of the previous trading day. The impact of strong private employment data greatly outweighed the impact of Fitch’s downgrade of the US sovereign rating Negative impact.
As of 17:18 Beijing time (05:18 am Eastern Time), the U.S. dollar, which measures the trend of the U.S. dollar against six trade-weighted major currencies, rose 0.07% to 102.465; it rose 0.05% to 102.64, having risen 0.5% on Wednesday (2nd) to 102.82, a new four-week high.
The benchmark U.S. Treasury yield was at 4.148%, at 4.437%.
StrongADPemploymentdataboosted the dollar
It showed that the number of non-farm payrolls in the U.S. private sector rose by 324,000 in July, greatly exceeding the expected 189,000, increasing the upside risk of the report to be announced on Friday (4th) and further boosting the dollar.
After raising interest rates by 0.25 percentage point in July, Fed Chairman Jerome Powell made it clear that policymakers will pored over economic data for clues on the state of the U.S. economy ahead of their next meeting in September.
A strong labor market could lead to continued upward pressure on wages and could push the Federal Reserve to extend its aggressive monetary tightening cycle. As a result, traders’ exposure to the downgrade of the U.S. credit rating was dampened.
“Expectations that this week’s employment data remains positive may prevent further repricing of the dollar towards the dovish West,” analysts at ING said in a note.
GBPAtBefore the Bank of England meetinggo down
It fell 0.23% to 1.268. Later in the day, the monetary policy decision will be announced, which is expected to raise interest rates from 5% to 5.25%, the highest in 15 years.
Previously, the drop to 7.9% from 8.7% in May meant that rate hikes could be as little as 25 basis points, compared with 50 basis points previously. However, inflation remains well above the central bank’s medium-term target of 2%, so the Bank of England could become the last central bank to end its tightening cycle.
Euro weakens; German economy struggles
Weak and volatile, it edged down 0.04% to 1.0932. The previous data showed that it fell 3.4%, suggesting weak domestic demand in the euro zone’s largest economy.
At the same time, it fell to 50.9 from the previous 52.0. Although it is in a state of expansion, it is lower than the expected 51.1.
JPYrise，Central JapanAgain exceeded expectationsBuyJapanese debt
The yen recovered from its lows at the beginning of the month, falling 0.36% to 142.81. However, the Bank of Japan once again implemented an unplanned bond purchase operation, which triggered a sharp drop in the yen. The US-Japan exchange rate once soared to 143.88 in the Asian morning market, setting a new high on July 7. However, as investors took profits, the yen subsequently rebound.
It fell 0.21% to 0.6524 after data showed that Australia held steady in June, while the second quarter fell less than expected.
It fell 0.12% to 7.1829; it fell 0.14% to 7.1829. . Earlier announcements were better than expected, supporting the yuan.
[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
2023-08-03 09:26:00
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