© Reuters Forex in Europe: Several central bank interest rate decisions announced this week, dollar strengthened, non-US currencies fell widely
Investing.com Investing.com – The US dollar strengthened in European morning trading on Monday (31). This week is pretty important for the markets, with several central banks holding monetary policy meetings, including the largest Fed.
At 5:23 pm Beijing time (5:23 am ET), the dollar, which measures the performance of the US dollar against six major trade-weighted currencies, was up 0.35% to 110.993; it was up 0.34% to 111.11, after hitting a one-month low of 109.53 last week. The benchmark US Treasury yield was 4.067%.
On Wednesday (November 2) local time, the FOMC will hold a meeting and is expected to raise interest rates by another 75 basis points.
There were dollar sell-offs last week on expectations that the Federal Reserve may not aggressively tighten monetary policy after raising rates this week amid signs of economic weakness.
However, the Fed’s preferred measure of inflation accelerated in September, suggesting that there is still work to be done to tame the central bank.
“With inflation below Fed expectations, the Fed will not slow the pace of rate hikes until there is evidence that price pressures are easing,” ING analysts said in a statement.
It fell 0.33% to 0.9930, despite a 0.9% rise on a monthly basis, well above expectations for a 0.3% decline. The euro rose briefly after raising rates by 75 basis points last week.
It was down 0.49% to 1.1553. But earnings this month remained close to 4% as political and economic uncertainty subsided under Rishi Sunack as prime minister.
This Thursday (Nov 3), there will be a meeting, which is widely expected to raise interest rates again to curb high inflation.
ING said: “Markets are firmly pricing a 75bp rate hike, but we believe with the Bank of England for the nextdeclineGet ready, the market underestimates the risk of a 50bp rate hike. “
Up 0.58% to 148.30, the yen continued to trade near the weakest level in 32 years after data showed further declines in September.
On Friday (28), the ultra-loose policy stance remained unchanged, which is diametrically opposed to the Federal Reserve’s aggressive tightening policy this year.
It fell 0.22% to 0.6397 and will announce an interest rate decision on Thursday (Nov 3) and is expected to raise interest rates by 25 basis points. It fell 0.12% to 0.5806.
It increased by 0.63% to 7.2982. Official data showed that it unexpectedly fell below the drying line, dropping to 49.2, compared to the 50.0 originally expected by the market.
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