EUR/USD 1.15148
0.115%
Gold 4324.31
1.563%
Oil 74.622
-0.428%
USD/JPY 160.619
-0.022%
GBP/USD 1.33087
0.120%
GBP/JPY 213.768
0.097%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Broadcom (AVGO.O) has raised the upper limit of its acquisition offer consideration from $2.5 billion to $3 billion.On June 18th, FAW Bestune Automobile Co., Ltd., a subsidiary of China FAW Group, signed a strategic cooperation agreement with Nasr Automobile Manufacturing Company, an Egyptian state-owned enterprise, in Egypts new administrative capital on the 17th. The agreement stipulates that they will jointly produce a series of "Nasr" brand vehicles. Egyptian Prime Minister Madbouly and other government officials witnessed the signing. Nabil Mohamed Hamad, General Manager of Nasr Automobile Manufacturing Company, said that this cooperation will support the company in producing "Nasr" brand vehicles according to the latest international standards, which will not only meet the needs of the Egyptian market but also help the company expand into regional and international markets.On June 18th, JPMorgan Asset Management strategist Hsu Chang-tai stated in a report that the Federal Reserve is unlikely to adjust interest rates this year, as the committee appears to be patient with the current policy rate. Hsu pointed out that the Fed kept interest rates unchanged and completely removed any dovish bias from its policy statement. Because the market interpreted the Feds initial statement as hawkish, US Treasury yields rose, and US stocks fell overnight. He added that under the new Warsh leadership, the Feds dual mandate—price stability and full employment—and its framework with the federal funds rate as the primary policy tool appear to have been solidified.June 18th - According to China Railway Shanghai Bureau Group Co., Ltd., the 2026 Dragon Boat Festival holiday transportation on the Yangtze River Delta railway started today. It is estimated that 3.48 million passengers will be transported on the day. Starting in the afternoon, Shanghai, Hangzhou, Nanjing, Hefei, Xuzhou, Ningbo, Wenzhou and other places will usher in the first small peak of passenger flow.Iranian Parliament Speaker Ghalibaf: Irans victory on the battlefield has been recognized by both enemies and friends.

Before US Retail Sales, the US Dollar Index declines from a multi-year high due to cautious optimism

Daniel Rogers

Jul 15, 2022 11:33

截屏2022-07-15 上午9.48.59.png 

 

Bulls of the US Dollar Index (DXY), which hit a 19-year high earlier in the day at 108.65, find it difficult to gain momentum during Friday's Asian session.

 

The dollar index increased to a multi-year high against the six major currencies in reaction to recession fears and worries about the Federal Reserve's rapid rate hikes. However, the price decrease from the previous day was brought on by recent inconsistencies in Fedspeak and US statistics.

 

Among the most notable Fed speakers who sought to downplay the probability of an increase in interest rates were Christopher Waller, governor of the Federal Reserve, and James Bullard, president of the Federal Reserve Bank of St. Louis. Bullard of the Fed, however, noted that "up to this point, we've framed this conversation exclusively in terms of 50 vs 75." Reuters quotes Fed's Waller as saying that markets may have anticipated a 100 basis point rate increase in July too soon. It should be noted that the Federal Reserve will observe a blackout period before the July 28 Federal Open Market Committee meeting starting this weekend (FOMC).

 

The Producer Price Index (PPI) for final demand in the US increased to 11.3 percent on an annual basis in June, up from 10.9 percent in May, according to the US Bureau of Labor Statistics. This outcome was higher than the 10.7% market expectation. In addition, compared to the previous week's total of 235,000 and the market's projection of 235,000, there were 244,000 first claims for unemployment benefits for the week ending July 9. The number of weekly claims for unemployment rose to its highest level in five months.

 

It should be recalled that the previous day, DXY bulls were under pressure due to the shrinking spread between the 2-year and 10-year US Treasury rates. While 2-year bond coupons decreased by 0.75 percent to 3.12 percent, 10-year US Treasury rates finished Thursday at 2.95 percent, up 0.95 percent from the previous day. As a result, the difference between the coupons of short-term and long-term bonds shrank from 23 basis points (bps) on Tuesday to 17 bps.

 

The Wall Street benchmark had a mixed performance as a result of these moves, and as of press time, S&P 500 Futures had also seen moderate increases.

 

It will be vital to follow US Retail Sales, which are predicted to grow 0.8 percent MoM in June from -0.3 percent in May, in addition to watching Fed speakers for new encouragement. The Michigan Consumer Sentiment Index (CSI) preliminary readings for July, which are forecast to be 49.9 vs. 50.0 before, should therefore be watched for certain signs of future changes.


Suggestion