Home NewsStock Market News (New York Exchange) Risk appetite returned, the dollar fell to a near two-week low, the euro and the pound strengthened | Anue Juheng

(New York Exchange) Risk appetite returned, the dollar fell to a near two-week low, the euro and the pound strengthened | Anue Juheng

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(New York Exchange) Risk appetite returned, the dollar fell to a near two-week low, the euro and the pound strengthened | Anue Juheng


The U.S. dollar index fell for two consecutive days on Tuesday (17th), to a near two-week low, as the recovery of risk appetite weakened the attractiveness of the dollar to investors. The euro rose on hawkish comments from the European Central Bank (ECB) officials, while strong employment data also supported the pound.

Optimistic earnings reports from companies such as Home Depot (HD-US) and United Airlines (UAA-US), news that China plans to relax technology regulations and progress in epidemic prevention, supported the overall market sentiment.

The ICE U.S. Dollar Index (DXY), which tracks the greenback against six major currencies, was down 0.81 percent at 103.34 in late New York trade, its lowest since May 6.

“Sentiment has improved significantly from last week, with most asset classes rebounding and returning to last week’s trend,” said Brad Bechtel, global head of foreign exchange at Jefferies.

Looking at the performance of economic data, US retail sales achieved solid growth in April, with a monthly increase of 0.9%, which was better than market expectations. Even if inflation remained high, there was no sign that demand was affected.

The U.S. dollar index remained weak after the retail sales data, but pared losses after Federal Reserve Chairman Jerome Powell stressed his determination to tighten monetary policy.

Powell on Tuesday reiterated his pledge to bring inflation back to his 2 percent target, saying he would continue to support rate hikes until prices fall back to healthy levels.

The euro rose 1.11% against the dollar at $1.0550 on the back of hawkish comments from the central bank, extending last week’s rally and pulling away from parity with the dollar.

Dutch central bank governor Klaas Knot said he supported the idea of ​​a 25 basis point rate hike in July, but did not rule out support for a larger rate hike if inflation risks worsened, becoming the first to signal a chance of a 50 basis point rate hike. bps of European Central Bank (ECB) officials.

Money markets are now predicting that the European Central Bank will raise interest rates by 105 basis points by December.

Sterling rose 1.40% to $1.2491, a near two-week high. Earlier, the UK announced that the Q1 unemployment rate fell to a near 50-year low, and job vacancies rose to 1.3 million, a new high, indicating that the labor market is still tight, and the strong employment data will help boost the central bank’s interest rate hike expectations.

The Australian dollar, seen as an indicator of risk appetite liquidity, also gained, gaining 0.76% against the greenback to $0.7025, a near one-week high.

The Reserve Bank of Australia (RBA) announced the minutes of its meeting on Tuesday that the central bank had considered raising interest rates by 40 basis points in May, but finally chose to raise interest rates by 25 basis points, and strongly suggested that it will raise interest rates again at the meeting next month.

The U.S. dollar weakened 0.73% to 6.7444 against the offshore yuan, which has lost about 7% since mid-April.

In terms of epidemic news, as the closure of the city entered its seventh week, Shanghai achieved a record of zero confirmed cases outside the quarantine area for 3 consecutive days on Tuesday, and continued to move forward on the road to unblocking.

The cryptocurrency market was relatively quiet, with bitcoin inching up 1% to $30,237.5, continuing to oscillate around the 30,000 mark, while ethereum rose 1.2% to $2,060.6.

As of Wednesday (18th) Taiwan time about 6:00 Price:

The dollar index was at 103.29. -0.8818% The euro against the US dollar (EUR/USD) was quoted at $1.0549 per euro. +1.1022% GBP/USD (GBP/USD) was quoted at $1.2491. +1.3880% The Australian dollar against the US dollar (AUD/USD) was quoted at $0.7027 to 1 Australian dollar. +0.8178% The U.S. dollar against the Canadian dollar (USD/CAD) traded at 1.2811 Canadian dollars. -0.2957% The U.S. dollar was quoted at 129.35 yen (USD/JPY) against the Japanese yen. +0.2247%

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