EUR/USD 1.17747
0.156%
Gold 3334.89
0.269%
Oil 65.635
-1.022%
USD/JPY 144.562
-0.237%
GBP/USD 1.36511
-0.031%
GBP/JPY 197.337
-0.256%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
July 5th news: On July 5th local time, the BRICS Business Forum opened in Rio de Janeiro, Brazil. Brazilian President Lula and Vice President Gerardo Alckmin attended the opening ceremony of the forum. In his opening speech, Lula emphasized the important contribution of BRICS countries to global economic development, saying that 40% of the current global GDP is contributed by BRICS members, and the economic growth rate of BRICS countries will reach 4% in 2024, which is higher than the global economic growth rate of 3.3% that year. Lula said that with the rise of global protectionism, emerging countries should jointly defend the global multilateral trading system and reshape the international financial architecture.Ukraines top military commander, Oleksandr Silsky, warned on Saturday that Russia could launch a new offensive in the Kharkiv region, a region in northeastern Ukraine that has been ravaged by fighting since the conflict erupted in 2022.The statement showed that the British government made its first ministerial visit to Syria in 14 years and re-established diplomatic relations with Syria.On July 5, the head of the Kyiv Military and Political Administration Bureau of Ukraine, Tekachenko, said that the large-scale air strike launched by Russia on Kyiv in the early morning of the 4th has so far caused 2 deaths and 31 injuries, and the number of casualties continues to rise.On July 5, European Central Bank board member Makhlouf said that if the euro wants to quickly replace the dollar as the pillar of the global financial system, countries still have a long way to go, because there are still many gaps in financial and economic integration among European countries. Makhlouf said that the dominance of the dollar will weaken in the long run, but Europe currently lacks a single fiscal asset that is as stable as U.S. Treasuries and can compete with it. "Frankly speaking, Europes economic system is not yet fully formed," Makhlouf said, adding that changes in currency exchange rates in recent months are more due to investors concerns about the rule of law in the United States. Makhlouf said: "It would be a bit of an exaggeration to say that this will suddenly push the euro to replace the dollar, because the euro does not currently have such capabilities."

US Dollar Index Recovers From Weekly Low Due To Weak US Inflation And Hawkish Federal Reserve Bets

Daniel Rogers

Feb 15, 2023 14:41

US Dollar Index.png 

 

During early Wednesday trade, the US Dollar Index (DXY) maintains a defensive stance at 103.30, following a comeback from a one-week low, as dollar bulls await fresh evidence to reverse a two-day decline.

 

US inflation numbers initially failed to excite US Dollar bulls, forcing the dollar's index against six major currencies to drop to its lowest level in a week the previous day. The US Treasury bond yield and the DXY, however, were later buoyed by the Fed's hawkish remarks.

 

The US Consumer Price Index (CPI) exceeded market expectations with a 6.4% year-over-year (YoY) increase, although it was the worst YoY growth since 2021, when it fell below 6.5%. Importantly, the CPI excluding food and energy, often known as the Core CPI, rose by 5.6% compared to market forecasts of 5.5% and prior readings of 5.5%.

 

In spite of the fact that the United States inflation failed to meet expectations for a "pleasant surprise," the majority of Federal Reserve (Fed) policymakers supported more rate hikes after reviewing the data. The yields on US Treasury bonds and the US Dollar were driven by the same factor. Lorie Logan, president of the Dallas Fed, highlighted, however, that they must be prepared to continue rate hikes for a longer period of time than initially anticipated. John Williams, president of the New York Federal Reserve Bank, reiterated this attitude, noting that the task of containing high inflation is not yet accomplished. In addition, the president of the Federal Reserve Bank of Philadelphia, Patrick Harker, stated that they are not yet through (increasing interest rates), but are likely close.

 

As a result, US 10-year Treasury bond rates vary around 3.75%, up three basis points (bps) after reaching a six-week high, while the two-year equivalent reached its highest level since early November 2022 by reaching 4.60%. Similarly, Wall Street's losses towards the conclusion of the day boosted the DXY's increase.

 

US Retail Sales and Industrial Production data for January, as well as the NY Empire State Manufacturing Index for February, should be closely monitored by traders of the US Dollar Index on Wednesday in order to validate the Fed's hawkish lean and continue the recovery's momentum.


Suggestion