Powell released the dove signal, and the dollar index fell sharply.
As Federal Reserve Chairman Bauer hinted that the pace of raising interest rates may be shortened soon, the US dollar weakened against a basket of currencies on the 30th, and the US dollar index fell overnight. The intraday trading once turned from falling to rising, and fell rapidly in the afternoon. At the end of the day, the US dollar index fell sharply.
The US dollar index, which measures the exchange rate of the US dollar against six major currencies, fell 0.82% that day and closed at 105.9470 in the foreign exchange market.
Speaking at the Brookings Institution on the afternoon of 30th, Federal Reserve Chairman Powell said that the Fed may slow down the rate hike as early as June 5438+February. He believes that slowing down the pace of raising interest rates now is a good way to balance risks.
JoePerry, a senior analyst at Jiasheng Group, a foreign exchange broker, said Powell was basically telling the market that the Fed was slowing down the pace of raising interest rates. This made the stock market take off and the dollar fell.
On the same day, the futures market expects the highest interest rate of the Federal Reserve Fund to drop below 5%, while the highest interest rate earlier in the day was 5.06%.
Influenced by Powell's speech, the yield of US 10-year treasury bonds dropped sharply by 14.3 basis points to close at 3.606%.
According to the data released by ADP in the morning, in June, the US private sector created110.027 million jobs, which was significantly lower than the market expectation of 200,000 jobs and 239,000 jobs in June.
Maze Ceniza, senior foreign exchange strategist at TD Securities, said that the data may have reached a turning point, which strengthened that the Fed is not only slowing down the rate hike, but the yield of US Treasury bonds may be approaching in a limited direction, which makes the market happy.
However, the revised data released by the US Department of Commerce in the morning showed that the annualized growth rate of GDP in the third quarter of the United States was 2.9%, which was higher than the initial values of 2.7% and 2.6% expected by the market. In the third quarter, the annual growth rate of personal consumption expenditure was 1.7%, which was higher than the initial values of 1.5% and 1.4% expected by the market.
As of the end of new york foreign exchange market, 1 euro exchange 1.04 14 USD, higher than the previous trading day's 1.0365438 USD; 1 GBP 1.2055 USD, higher than the previous trading day's1.950 USD.
1 USD was converted into 137.99 yen, which was lower than 138.65 yen in the previous trading day; 1 USD is 0.9455 Swiss francs, which is lower than 0.9537 Swiss francs in the previous trading day; 1 USD 1.3443 Canadian dollars, lower than the previous trading day's 1.3585 Canadian dollars; 1 USD was exchanged for SEK 10.5042, which was lower than SEK 10.5868 in the previous trading day.