(New York = Yonhap Infomax) Correspondent Bae Soo-yeon = The value of the dollar has been mixed. This is due to heightened vigilance ahead of Federal Reserve Chairman Jerome Powell’s speech. The euro strengthened further. It has been confirmed that inflationary pressure in the Eurozone (19 countries that use the euro) has eased.
According to Yonhap Infomax (screen number 6411), the dollar registered 139.330 yen in the New York foreign exchange market at 9:00 on the 30th (hereinafter US Eastern time), up 0.592 yen (0.43% ) compared to the battlefield price of 138,738 yen in New York.
The euro moved to $1.03604 per euro, up $0.00350 (0.34%) from the battleground price of $1.03254.
The euro registered 144.37 yen to the euro, up 1.07 yen (0.75%) from 143.30 yen on the battlefield.
The Dollar Index, which reflects the value of the dollar against six major currencies, came in at 106.583, down 0.25% from its previous record high of 106.853.
The euro has been on an uptrend, once trading at $1.03915, showing an uptrend. This is because it has been confirmed that the increase in the consumer price index (CPI) in the eurozone has slowed down. The euro-zone consumer price index (CPI) released on the day still showed double-digit increases, but the rate of increase was slower than the previous month. The Eurozone CPI buffer for November increased 10.0% year over year. This was lower than the 10.6% confirmed in the previous month and lower than the 10.4% expected by experts compiled by the Wall Street Journal (WSJ). The November CPI reserve fell 0.1% month on month. Excluding volatile items such as energy and food, November core CPI rose 5.0%. Core CPI registered 0.0% MoM.
Markets are eyeing Fed Chairman Jerome Powell’s remarks due later today. This is because the possibility cannot be ruled out that President Powell will have an impact comparable to that of Jackson Hole. In his Jackson Hole speech in August, President Powell stunned the market by saying that he would continue to raise interest rates until he was sure inflation was under control. In this speech, he is expected to focus on dispelling expectations of the Fed pivot (policy transition).
Wall Street is stepping up vigilance even as it expects the Fed to raise its key interest rate by 50 basis points at its Federal Open Market Committee (FOMC) meeting on 13-14 next month. That’s because Fed officials ramped up their hawkish comments ahead of Chairman Powell’s speech.
Louis Fed Chairman James Bullard recently pointed out that “the market is underestimating the risk of the FOMC becoming more aggressive.” New York Fed Chairman John Williams also stressed: “We think we need to maintain restrictive policies for now” and “we expect them to continue until at least next year.”
US economic data sent mixed signals.
US private sector job growth in November was weaker than expected on Wall Street. Private sector employment increased by 127,000 in November from the previous month. This is below the 190,000 expected by experts compiled by The Wall Street Journal (WSJ), the lowest level since January 2021.
In the third quarter (July-September) of this year, the growth rate of the US economy maintained a positive (+) growth trend. The growth rate for the third quarter was better than previously announced breakout data. Seasonally adjusted gross domestic product (GDP) in the third quarter increased by 2.9% year on year compared to the previous quarter. This is an improvement over the previously reported 2.6% increase. A 2.7% increase was even better than market expectations compiled by the Wall Street Journal (WSJ).
The value of the Chinese yuan has skyrocketed. China’s offshore yuan is trading at around 7.07 yuan, down sharply from the previous day’s closing price of 7.1427 yuan. This is because protests in major Chinese cities have subsided and the number of confirmed cases of infection with the new coronavirus (Corona 19) is also declining. According to the National Health Commission of China, the number of new infections in China the previous day was 36,683 (excluding 929 asymptomatic → symptomatic reclassification), a decrease of 794 from 28th. On the 28th there were 1,331 new infections fewer than on the 27th, a day earlier, followed by a drop for two consecutive days. It is the first time since the 18th and 19th that the number of new infections in mainland China has decreased for two consecutive days.
One of the targets of the protesters’ criticism against “Zero Corona”, “regular total PCR tests (gene amplification)”, has also shown signs of easing. Daxing District, Beijing said that in order to reduce the risk of infection due to crowding and save financial resources, during the PCR test on this day, the elderly who only live at home for a long time, the students who follow online classes every day , infants and home workers don’t get PCR tested every day unless it’s necessary to go out. Beijing’s Tongzhou District issued a similar notice the same day.
“The main focus is the new eurozone CPI,” said CMC strategist Michael Hewson.
He explained that this is because the indicator can set the scene for whether we will get a 50 basis point or 75 basis point rate hike when the ECB meets in two weeks time.
“There is growing evidence that inflation could be nearing its peak if volatility in commodity prices in recent months is any guide,” he said.
“The underlying message is that the Fed is not happy with the current inflation and jobs situation,” said State Street’s Bart Wakabayashi.
“Powell will continue to be aggressive at this point,” he said.
“Overall, China appears to be preparing to move from a ‘zero corona’ policy to a ‘with corona’ policy,” said Kim Mundy, a CBA strategist.
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This article was published at 23:09, 2 hours ago, on the Infomax financial information terminal.
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