Home NewsForex Market News (New York) DXY fell to a more than 2-week low on the eve of the U.S. CPI report, the euro bounced strongly | Anue Juheng

(New York) DXY fell to a more than 2-week low on the eve of the U.S. CPI report, the euro bounced strongly | Anue Juheng

by WOOWinvest
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(New York) DXY fell to a more than 2-week low on the eve of the U.S. CPI report, the euro bounced strongly | Anue Juheng

On the eve of the release of the U.S. consumer price index (CPI) report in August, the dollar index fell to a more than two-week low on Monday (12th), and the euro bounced nearly 1.6% during the session, the largest increase in six months.

In late New York trade, the ICE Dollar Index (DXY), which tracks the greenback against six major currencies, was down 0.64% at 108.30, its lowest since Aug. 26.

Driven by the Fed’s expectation of aggressive interest rate hikes, the US dollar has performed strongly in recent months, and last Wednesday (7th) brushed a new 20-year high, but the follow-up trend was weak.

Joe Manimbo, market analyst at Convera, said the reason behind the temporary pause in the dollar’s rally is basically related to improving risk sentiment, hawkish attitudes from other central banks, and expectations for inflation reports. One factor that helped limit the dollar’s losses, however, were signs of solidity in the U.S. economy.

The latest survey from the Federal Reserve Bank of New York showed that consumer inflation expectations fell further in August as gasoline prices continued to fall, a news that is expected to ease some of the concerns of Fed officials. Next, the market will pay close attention to the CPI report released on Tuesday (13th) to assess the Federal Reserve’s (Fed) rate hike attitude.

The euro rose sharply against the dollar, rising nearly 1.6% during the session, its biggest gain since March, and was up 0.82% at $1.0121 by press time.

European Central Bank (ECB) officials see a growing risk of raising interest rates to 2 percent or more in an effort to curb inflation, Reuters quoted sources as saying.

However, German think tank Ifo on Monday revised down its 2023 forecast for German economic growth to -0.3% from 3.5% in June, and raised its inflation forecast sharply to 9.3% from 6% as the Russia-Ukraine war pushes up energy costs, This in turn compresses the chances of the German economy recovering from the epidemic.

GBP/USD rose 0.84% ​​to $1.1682 as the dollar retreated, while AUD/USD rose 0.70% to $0.6885, extending Friday’s rally.

The yen edged down 0.18% against the dollar to trade at 142.81 yen. Japanese officials over the weekend hinted at the need to intervene to stop the yen from depreciating further, and a government spokesman also said in an interview that necessary measures may be needed to prevent the yen from depreciating too much.

As of Tuesday (13th) Taiwan time about 6:00 Price:

The dollar index was at 108.2866. -0.6724% The euro against the US dollar (EUR/USD) was quoted at $1.0124 per euro. +0.8467% GBP/USD (GBP/USD) was quoted at $1.1682. +0.8286% The Australian dollar against the US dollar (AUD/USD) was quoted at 1 AUD=0.6887. +0.6871% The US dollar against the Canadian dollar (USD/CAD) was quoted at 1.2983 Canadian dollars per US dollar. -0.3148% The U.S. dollar was quoted at 142.81 yen against the Japanese yen (USD/JPY). +0.1754%

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