Driven by expectations of a strong rate hike by the Federal Reserve (Fed),US dollar indexMonday (31st) rose across the board, recovering some of the decline earlier this month, but the monthly line still closed slightly lower, stopping four consecutive reds, and it was the second time this year that it has closed in black.
ICE, which follows the dollar against the six major currencies, is lagging behind in New York US dollar index (DXY) rose 0.76% to 111.60, the monthly line fell 0.1% and closed again after May.
The market is widely expected that the Fed will raise its benchmark interest rate by 3 yards this week to a range of 3.75-4%, but if the Fed suggests a slower pace of rate hikes at this meeting, the dollar gains may be limited. Federal funds futures are pricing in a 55% chance of a two-point rate hike in December, down from around 67% on Friday.
Amo Sahota, director of Klarity FX, believes that a lot of news has been reflected in the trend of the dollar and that the dollar is consolidating overall.
dollar againstJPYUp 0.9% to 148.75 JPYwas up nearly 3% this month and closed in the red for three consecutive months. Japan’s finance ministry said on Monday it spent a total of $ 42.8 billion on support in October.JPYexchange rate.
Despite market predictions that the Bank of England (BOE) will raise interest rates by another 3 yards this week,GBPStill on the defensive, analysts see persistent pressure on long-term expectations on UK interest rates.
Before the deadline,GBPAgainst the dollar, it fell 1.22% to $ 1.1468, but is still up 1.3% for the month.
James Smith, a developed markets economist at ING, said: “The market and most economists expect the central bank to raise rates by 3 yards this week, but we believe the probability of a rate hike 2 is a slightly higher and, more importantly, we believe UK rates are unlikely to exceed 4% next year. “
EURIt fell 0.85% against the dollar to $ 0.9878, down about 1% for the month.EURThe regional inflation rate rose to a record high in October, an annual increase of 10.7%, but after the announcement, theEURAlmost no answer.
On the other hand, dragged down by a decline in the Purchasing Managers’ Index (PMI) in the manufacturing sector in October, offshoreRMBAgainst the dollar, down nearly 1% to 7.3326 RMBCompared to the US dollar, the monthly line fell 4%.
AUDIt also fell 0.3% to $ 0.6392 against the dollar. Even with inflation rising to a 32-year high in the last quarter, the Reserve Bank of Australia (RBA) is expected to remain dovish this week, with only one rate hike expected.AUDIt lost nearly 1.7% against the dollar this month.
In emerging markets, former president of Brazil, Luiz Inacio Lula da Silva, beat incumbent Jair Bolsonaro by a small margin to be elected next president. The news encouraged the Brazilian real to rise more than 2% against the dollar on Monday. At 5.1796 real to 1 dollar.
Starting Tuesday (1st) Taiwan Time at around 6:00 am Price:
- US dollar indexReported 111.5997. + 0.8304%
- EURExchange rate against the US dollar (EUR / USD) at 1 EURAgainst $ 0.9877. -0.8632%
- GBPExchange rate against the US dollar (GBP / USD) at 1 GBPAgainst 1.1466 yuan. -1.2403%
- AUDExchange rate against the US dollar (AUD / USD) at 1 AUDAgainst 0.6392 yuan. -0.2653%
- dollar againstCanadian dollars (USD / CAD) exchange rate at 1.3622 US dollar Canadian dollars。 + 0.1618%
- dollar againstJPY (USD / JPY) exchange rate at USD 148.71 JPY。 + 0.8751%
