EUR/USD 1.15209
0.062%
Gold 4652.36
-0.506%
Oil 103.253
-0.558%
USD/JPY 159.587
-0.029%
GBP/USD 1.32125
0.144%
GBP/JPY 210.857
0.133%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On April 6, local time, Iran claimed that it launched three rounds of missiles at Israeli territory within 20 minutes. Israel stated that Iran launched at least 10 missiles carrying cluster warheads in the three rounds of attacks.On April 6, Ali Velayati, foreign affairs advisor to Irans Supreme Leader, warned the United States on April 5 that if it "makes another mistake," the Iranian-led resistance front would retaliate by blocking the Bab el-Mandeb Strait. Velayati posted on social media that day: "Today, the unified command of the resistance front views the Bab el-Mandeb Strait as much as the Strait of Hormuz. If the White House makes another foolish mistake, it will soon realize that with just one move, global energy and trade flows can be disrupted."The yield on Japans 20-year government bonds rose to 3.325%.On April 6, a Democratic member of the U.S. House of Representatives warned that U.S. military action in Iran is making the American people "less safe," while also describing Trumps recent profanity-laden rhetoric as "insanity." Jim McGovern, the highest-ranking Democrat on the House Rules Committee, wrote, "When the United States violates international humanitarian law, we are inviting other countries to follow suit. This makes us all unsafe." He noted that international human rights law experts are "raising alarms about U.S. actions in war," including serious violations of the Geneva Conventions and international law, as well as possible "war crimes." In another post, McGovern also described Trumps recent threats as utterly insane and extremely dangerous. "This is simply insanity. The President of the United States needs treatment."On April 6th, following the "Science and Technology Exchange Connect" initiative, the Shenzhen Branch of the State Administration of Foreign Exchange launched another foreign exchange facilitation measure, the "Science and Technology Salary Connect" pilot program. This program focuses on providing convenient two-way foreign exchange services for the salaries of employees of key state-supported units such as high-quality enterprises, universities, and research institutions. This facilitates the cross-border flow of talent in the Guangdong-Hong Kong-Macao Greater Bay Area and supports the construction of Shenzhen as an international science and technology innovation center. It is understood that qualified employees can, through public-private partnerships with their employers, avoid submitting or repeatedly submitting documents when processing salary purchase and settlement transactions at pilot banks. This model integrates relevant foreign exchange facilitation policies, leverages corporate credit enhancement, and significantly improves the efficiency and convenience of cross-border salary processing for employees with foreign work experience, providing high-quality foreign exchange services to support Shenzhens talent attraction efforts.

US Dollar Index falls below 104,000 on China-inspired optimism and inconsistent Fed utterances in advance of US inflation

Daniel Rogers

Jan 09, 2023 14:43

US Dollar Index.png 

 

US Dollar Index (DXY) renews its intraday low near 103.75 as it extends the previous day’s U-turn from a three-week high during Monday’s Asian session. In doing so, the DXY expresses both optimism and mixed apprehension on the next move of the US Federal Reserve (Fed).

 

That Nevertheless, the risk-positive headlines from China, one of the world’s main commodities users, strengthen the market’s bullish sentiment as Beijing reopens national borders following a three-year suspension. On the same line would be the early evidence suggesting China’s strong spending throughout the Christmas season, as well as comments from People’s Bank of China (PBOC) Official suggesting optimism surrounding China’s economy conditions.

 

In contrast, negative US wage growth, ISM Services PMI, and Factory Orders data from the previous day depressed Treasury bond yields and the US Dollar Index (DXY). Nonetheless, the headline US Nonfarm Payrolls and Unemployment Rate data for December were positive.

 

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, highlighted dangers of a US economic slowdown in response to the mixed statistics, while Charles Evans, president of the Federal Reserve Bank of Chicago, recommended a 0.50% rate hike in December. In addition, Kansas City Fed President Esther George underscored inflation fears, while Richmond Federal Reserve Bank President Thomas Barkin praised the last two months of inflation figures as "a move in the right direction" but emphasized inflation anxieties due to the higher median values.

 

10-year US Treasury yields fell 16 basis points (bps) to 3.56 percent, the lowest level in three weeks, after Wall Street ended higher. At the time of publication, intraday gains for S&P 500 Futures was 0.20 percent.

 

Moving forward, Thursday's US Consumer Price Index (CPI) for December is emphasized by the mixed US data and a decrease in US Treasury bond yields, as stronger inflation readings could shift focus to the Fed's hawkish bets and force the DXY to rebound.

Suggestion