Reports on the Fed's interest rate hike expectations weakened, and the US dollar index fell sharply.
Inflation in the United States has fallen, and the market's expectations for the Fed to raise interest rates have weakened. 10, the dollar fell across the board against a basket of currencies. The US dollar index consolidated strongly in the overnight market, and fell rapidly in the morning, followed by a narrow consolidation. In late trading, the US dollar index fell sharply.
The US dollar index, which measures the exchange rate of the US dollar against six major currencies, fell by 2. 12% that day and closed at 108.2040 in the foreign exchange market.
According to the data of 5438+00 released by the US Department of Labor in June, the US consumer price index of 5438+00 in June was 298.0 12 points, up 0.4% from the previous month, which was consistent with the increase in September, but lower than the market expectation of 0.7%. The index rose by 7.7% year-on-year, lower than the 8.2% in September and the 8% expected by the market, which was the lowest level since this year.
VanLuu, head of currency and fixed income strategy at RussellInvestments, said that the US core consumer price index of 5438+ 10 in June was weaker than expected, which was driving the dollar to fall sharply. This, coupled with high valuation and improved market sentiment, contributed to the sharp decline of the day.
MikeRiddell, senior portfolio manager of AllianzGlobalInvestors, said that the first inflation in the United States in recent days was significantly lower than expected, forcing many followers of leveraged trends to rush to close short positions in dollars. Based on the correlation between the prices of bonds and risky assets in the past few months, it is expected that the sharp rise in the prices of risky assets that day will lead to the decline of the US dollar.
Bi Panlai, head of North American foreign exchange strategy at Capital Markets Company of Imperial Commercial Bank of Canada, believes that the weakness of the US dollar may continue, because the position in the foreign exchange market has been unbalanced for some time, and those investors who are still making more dollars should clean up their long positions in the US dollar.
DanielWood, portfolio manager of the emerging market bond team of WilliamBlair, a market service organization, said that the market's concerns about tightening fiscal conditions have weakened, so the status of the dollar as a safe haven has become less important. This is a microcosm of what will happen next year.
JoePerry, a senior analyst at Jiasheng Group, a foreign exchange broker, said before the inflation data was released that the US dollar index was once again supported by the key moving averages and channel downturns this week. With the peak of inflation and the rising expectation of slowing interest rate hike, the strongest rising stage of the index has passed, but the rising structure of the past year is still intact, and the dollar is expected to remain high until inflation shows a continuous downward trend.
By the end of the new york foreign exchange market, 1 euro exchange 1.0 183 USD, higher than the previous trading day's 1.0005 USD; 1 GBP was converted into 1. 1696 USD, which was higher than the previous trading day's 1. 1344 USD.
1 USD was converted into 14 1.84 yen, which was lower than the previous trading day's 146.64 yen; 1 USD is 0.9666 Swiss francs, which is lower than 0.9857 Swiss francs in the previous trading day; 1 USD was converted into 1.3352 Canadian dollars, which was lower than the previous trading day's 1.3534 Canadian dollars; 1 USD was exchanged for SEK 10.6 139, which was lower than SEK 10.8935 in the previous trading day.