EUR/USD 1.16616
0.317%
Gold 4204.16
-0.037%
Oil 59.225
1.345%
USD/JPY 155.425
-0.282%
GBP/USD 1.32875
0.571%
GBP/JPY 206.525
0.304%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The euro rose to a one-month high against the dollar (EUR/USD), currently trading at 1.1678. The pound rose to a one-month high against the dollar (GBP/USD), currently trading at 1.3294.Ubers (UBER.N) CEO plans to travel to Asia next week, visiting Japan and South Korea. During the trip, he will meet with government officials, business leaders, and Uber employees.December 3 – European Central Bank Chief Economist Lane said on Wednesday that several “upside surprises” have recently occurred in eurozone inflation, raising questions about the ECB’s expectation that inflation will fall early next year. Speaking at an event, Lane noted, “Inflation risks are not one-way; we have recently observed some upside surprises.” He added, “Due to lower energy prices, we had clearly predicted that inflation would fall below the target level, especially in the first few months of next year. But since then, some data have actually moved in the opposite direction, and these changes constitute a moderating factor in our current forecast.”Bank of America Global Research has raised its price target for Amazon (AMZN.O) to $303.00, up from $272.00 previously.December 3rd - Official Swiss data showed that Switzerlands inflation rate unexpectedly slowed by 0.1 percentage point in November, falling to 0%, slightly below expectations. Economists said on Wednesday that despite the lower-than-expected inflation rate, falling to the lower end of the Swiss National Banks (SNB) target range, the SNB will maintain its zero-interest-rate policy next week and throughout 2026, rather than opting for negative interest rates. J.Safra Sarasin economist Karsten Junius stated, "There is no need to adjust policy." Rudolf Minsch, chief economist of the Swiss Economic Union, a major Swiss business lobbying group, also predicts that the SNB will maintain zero interest rates next week and throughout 2026, while Switzerlands inflation rate will rise to around 0.4% next year. He said, "Negative interest rates would also have adverse effects and should only be used when urgently needed, but we havent seen that."

Focus on US inflation as US Dollar Index fights to hold around 20-year high of over 108.00

Alina Haynes

Jul 13, 2022 10:54

 截屏2022-07-13 上午9.49.03.png

 

The US Dollar Index (DXY), which oscillates close to the greatest levels in two decades, which were attained the day before, illustrates the market's nervousness prior to substantial US inflation data. As a result, the dollar index versus the six most important currencies regains recent losses and defends the 108.00 level, remaining at 108.16 during Wednesday's Asian session.

 

The White House (WH) statement and subpar US data contributed to the DXY's decline from the previous day's multi-year high. In a memo, the White House said that "US economic statistics, notably the June jobs report, are inconsistent with a recession in the first or second quarters," according to Reuters on Tuesday. The news helped the market book profits ahead of crucial data and events.

 

Additionally, in June, the US NFIB Business Optimism Index registered 89.5 vs. 93.1, its lowest reading since early 2013.

 

It should be noted, though, that the most recent economic projections from the International Monetary Fund (IMF) seem to have reignited market concerns and increased demand for the US dollar. The IMF lowers its US GDP growth prediction for 2022 from 2.9 percent in late June to 2.3 percent as a result of fresh US data. The issues of growing inflation and the significant Federal Reserve interest rate increases necessary to control prices were highlighted by the Fund's inclusion of the new estimates in the entirety of its annual assessment of the U.S. economy, according to Reuters.

 

Concerns about a viral variant spreading to Shanghai and causing a lockdown in Wugang, Henan Province, came from China at the same time.

 

The main obstacle to the DXY's movements is probably the market's anxiety ahead of the critical US CPI for June, which is expected to increase to 8.8 percent YoY from 8.6 percent YoY. Prior to the announcement of the inflation data, Thomas Barkin, president of the Federal Reserve Bank of Richmond, said, "There is a road to lower inflation, but a recession is possible."

 

Despite the brief recovery, Wall Street benchmarks ended in the red as 10-year US Treasury rates fell for the second day in a row, to about 2.97 percent. Additionally, Wednesday's opening of the S&P 500 Futures shows minor increases.

 

Future DXY traders will need access to US inflation data, but they may also find fun in news from China and speculations surrounding Russia. DXY may experience more increases if the US CPI shows a favorable surprise.


Suggestion