The U.S. producer price index (PPI) showed no obvious signs of cooling last month, but the market still believes that the Federal Reserve (Fed) may have completed raising interest rates. As U.S. bond yields fall,dollar indexAfter holding steady on Wednesday (11th), investors will next turn their attention to the Consumer Price Index (CPI) released on Thursday (12th).
In late New York trading, ICE tracks the dollar against six major currencies. dollar index (DXY) fell slightly by 0.09% to 105.72.
Currency markets showed little reaction to the minutes from last month’s Fed meeting. Minutes of the meeting showed that uncertainty about the U.S. economic outlook led officials to adopt a more cautious stance when discussing the need for further interest rate hikes.
Dallas Fed President Lorie Logan and Fed Governor Christopher Waller believe that rising U.S. bond yields in recent months have had the effect of additional interest rate hikes, making it more urgent for the Fed to raise interest rates again. Not so high.
Karl Schamotta, chief market strategist at Corpay, said: “The pigeon has escaped from the cage, but it has not yet spread its wings. Overall, the meeting minutes reflected that officials were more worried about the downside risks to the U.S. economy, but in the face of contradictory signals from the data, they also Express humility.”
dollar indexAfter hitting a two-month low of 105.55 during the session, the subsequent trend changed little.EURIt once rose to 1.0634, the highest since September 25.
Data show that the U.S. PPI increased by 0.5% in September, lower than the previous value, but higher than market expectations. The annual growth rate was 2.2%, higher than the previous value and expectations, and there was no obvious sign of cooling.
OANDA senior market analyst Edward Moya said: “Even if the data is hot, the market is still optimistic about the process of slowing inflation.” He pointed out that the profit margin of building materials affected this PPI data.
Moya also said that after Fed officials issued stable dovish comments this week, the market is indeed confident that the Fed may complete raising interest rates.
Atlanta Fed President Raphael Bostic and Minneapolis Fed President Neel Kashkari both believe the Fed does not need to raise interest rates further.
The recent weakness of the U.S. dollar is mainly due to the decline in U.S. bond yields. With the Federal Reserve’s relatively moderate stance on future interest rate increases, bond prices have risen, and U.S. bond yields and prices have moved in opposite directions.
before deadline,10-year U.S. Treasury yieldIt fell to 4.558%, continuing its decline from the 16-year high hit last Friday (6th). Investors are waiting for the Consumer Price Index (CPI) to be released on Thursday (12th) to understand future interest rate trends, while paying close attention to the conflict between Israel and Hamas.
GBPUp 0.25% to $1.2311, at a three-week high,EURIt rose nearly 0.2% to $1.0619.
According to a latest survey by the European Central Bank (ECB),EURDistrict households expect that the inflation rate in the next three years will be slightly higher than the 2% target set by the ECB, reflecting that the central bank’s plan to combat inflation seems to be difficult to convince the public.
Dutch Central Bank President Klaas Knot said on Wednesday that the European Central Bank has made important progress in bringing inflation back to its target level, but there is still a long way to go and does not rule out the possibility of further interest rate increases.
As of Thursday (12th) approximately 6:00 Taiwan time, price:
dollar indexReport 105.7236. -0.0528%
EURExchange rate quote against the US dollar (EUR/USD) 1 EURagainst US$1.0616. +0.1226%
GBPExchange rate quote against the US dollar (GBP/USD) 1 GBPagainst US$1.2311. +0.2361%
Australian dollarExchange rate quote against the US dollar (AUD/USD) 1 Australian dollaragainst USD 0.6407. -0.3267% USD/USDCanadian Dollars (USD/CAD) exchange rate was quoted at 1.3591 per US dollar Canadian Dollars. +0.0736% USD/USDJPY (USD/JPY) exchange rate was quoted at 149.06 per U.S. dollar JPY。+0.2623%
2023-10-11 22:15:42
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