“The US Dollar Bounces Back While BOE Predicted to Increase Interest Rates for the 12th Consecutive Time: Forex Market Analysis”

Investing.com – In the European morning session on Thursday (11th), the US dollar resumed its upward trend after falling yesterday, and the pound weakened before the Bank of England’s latest interest rate decision was announced.

As of 17:11 Beijing time (05:11 am Eastern Time), the U.S. dollar, which measures the trend of the U.S. dollar against six trade-weighted major currencies, rose 0.44% to 101.718; it rose 0.36% to 101.84, regaining yesterday’s loss.

The benchmark U.S. Treasury yield was at 3.438%, at 3.8701%.

Data on Wednesday showed a slight slowdown in April, supporting the Fed’s pause in rate hikes.

Risk sentiment, however, supported the dollar as uncertainty over the U.S. debt ceiling remained, with U.S. Treasury Secretary Janet Yellen warning on Thursday of potential global economic damage from a default.

ING analysts said in a note: “The current situation has inevitably had an impact on risk sentiment and provided support for the dollar. Now that there are growing concerns, it may be necessary to (stock or currency market) ) to break the impasse.”

It fell 0.36% to 1.2579, falling from a one-year high of 1.2679 hit on Wednesday (10th). The interest rate decision will be announced later, and it is expected to raise interest rates for the 12th time in a row. At present, inflation in the UK is still high in double digits, the highest among developed countries.

ING said, “Last month’s hawkish inflation and wage data suggested that the Bank of England will raise interest rates by another 25 basis points. The bar is high.”

It fell 0.48% to 1.0927, back near the midpoint of its trading range over the past month.

European Central Bank policymaker Francois Villeroy de Galhau said on Wednesday that further rate hikes would become more gradual, adding that “the hikes that have taken place in the past will basically help us reach our target within two years.”

It rose 0.34% to 134.80, recovering part of yesterday’s loss. The yen rose 0.6 percent yesterday after U.S. yields fell following the release of U.S. consumer inflation data.

It fell 0.36% to 1.2579. Meanwhile, the yuan fell to a two-month low. It rose 0.06% to 6.9375 and rose 0.13% to 6.9466. Reported at 2.717%. Previously, the data was sluggish.

[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