EUR/USD 1.15249
-0.114%
Gold 4052.38
-0.626%
Oil 58.775
-0.999%
USD/JPY 157.439
0.178%
GBP/USD 1.30662
0.060%
GBP/JPY 205.717
0.251%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Chicago Fed President Goolsby, a 2025 FOMC voting member, will speak in ten minutes.The VIX fear index rose 3.49 points to 27.15, hitting a new high in more than a month.On November 21, Reliance Industries Limited announced it will cease processing Russian oil at a portion of its massive Jamnagar refinery due to US sanctions forcing the company to avoid transactions with Moscow. In a statement, the company said the export-oriented portion of the refinery received its last shipment of Russian crude oil on Thursday. However, it added that some oil purchased before the US imposed sanctions on Russias two largest oil companies will be unloaded at another part of the facility. A source familiar with the matter said Reliance is currently not purchasing Russian oil and has not yet decided whether to resume purchases.S&P upgraded its outlook for seven Nigerian banks to positive.On November 21, Egypt opted to remain cautious and keep interest rates unchanged after inflation unexpectedly accelerated for the first time in five months. The Monetary Policy Committee stated on Thursday that the central bank would maintain the benchmark deposit rate at 21% and the lending rate at 22%. The regulator said in a statement that it "prefers a wait-and-see approach to curb inflationary pressures." Wall Street forecasts were divided. Of the nine economists surveyed, four, including Goldman Sachs and Bank of America, correctly predicted the decision. The rest, including Morgan Stanley, expected a 100-basis-point rate cut. This decision to keep rates unchanged breaks two months of monetary easing in the North African nation. Since April, Egypt has cumulatively cut rates by 625 basis points, aiming to stimulate private investment and reduce interest payments, which account for a large portion of the countrys revenue, after raising rates to record levels in early 2024 in conjunction with currency devaluation.

Bullish on the US Dollar Index around 110.00 while following Michigan FDLE

Daniel Rogers

Sep 16, 2022 14:57

截屏2022-09-16 上午10.03.18.png 

 

Due to Fed hawks' continued dominance and encouraging US statistics, the US Dollar Index (DXY) is trading around 109.80 during Friday's Asian session. In addition to strengthening the dollar's position against the other six major currencies, economic worries in China and Europe also help the greenback.

 

The FedWatch Tool on the CME predicts that the FOMC will raise interest rates by between 0.75 and 1.00 percent at their meeting next week. DXY bulls have been feeling the squeeze from falling US 10-year Treasury rates of -1.2 bps to 3.447%, after a gain of 1.38 bps the day before.

 

Meanwhile, 0.0% growth was forecasted for US retail sales in August, and -0.4% was revised down for July. And the New York Federal Reserve's Empire State Manufacturing Index rose to -1.5 in September from -31.3 in August and -13 as predicted by the market. The Philadelphia Fed Manufacturing Index, on the other hand, dropped to -9.9 for the relevant month, well below both the forecasted level of 2.8 and the prior level of 6.2. Additionally, August US Industrial Production was revised down to -0.2% from a previous reading of -0.5% and market expectations of 0.1% growth.

 

Bloomberg also released a story expecting more tougher circumstances for China in 2020. On the same line, we read about the ongoing tensions between China and the United States and the People's Bank of China's (PBOC) inaction. A surge in pessimism can be attributed to a number of factors, including hawkish comments from European Central Bank (ECB) policymakers and worries that the Eurozone would remain in a perilous situation despite a good winter stockpile.

 

As a result of these maneuvers, the stock market ended the day in the negative, US Treasury bond yields increased, and the S&P 500 Futures dropped by at least 0.65% throughout the trading session.

 

Intraday movement will be heavily influenced by the Michigan Consumer Sentiment Index (CSI) preliminary readings, which are expected to be 60 compared to 58.2 previously. Yet, the focus will be on the Federal Open Market Committee meeting next week. Given the recent recessionary issues impacting the world's top industrial actor and second-largest economy, it is worth noting that the DXY may also be affected by the second-tier statistics from China.


Suggestion