Home NewsStock Market News (New York Markets) Continue to raise interest rates into the Fed consensus, the dollar jumps to a one-month high, the euro and the pound depreciate |

(New York Markets) Continue to raise interest rates into the Fed consensus, the dollar jumps to a one-month high, the euro and the pound depreciate |

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(New York Markets) Continue to raise interest rates into the Fed consensus, the dollar jumps to a one-month high, the euro and the pound depreciate |


The U.S. dollar index rose to a one-month high on Thursday after officials from the Federal Reserve said it was necessary to continue raising interest rates, as investors reassessed the minutes of the meeting released a few days ago, arguing that the Fed’s attitude was stronger than originally expected Be more hawkish. Under the pressure of the strong dollar, major currencies such as the euro and the pound depreciated.

The ICE U.S. Dollar Index (DXY), which tracks the greenback against six major currencies, was up 0.87% at 107.50 in late New York trade, its highest since July 19.

Several Fed officials spoke on Thursday, reaching a consensus on the Fed’s need to continue raising borrowing costs to suppress inflation, although officials remained divided on the pace and magnitude of rate hikes.

St. Louis Fed President James Bullard said he favors another three rate hikes in September, while San Francisco Fed President Mary Daly also said a 2-3 rate hike next month is reasonable , and in favor of the central bank raising interest rates to just above 3% by the end of the year.

Kansas Fed President Esther George was more cautious, saying the pace of future rate hikes and the final level of interest rates are still up for debate, and to know where rates should go, you have to be very confident that inflation is coming back down. George did not say whether he would support another rate hike by the Fed by 3 or 2 yards next month.

FXStreet.com analyst Joseph Trevisani said the rhetoric from almost every Fed official was very firm that “we have to raise rates, we have to raise rates, and rates are going higher.”

Despite the emphasis on fighting inflation, the minutes of the Fed meeting released on Wednesday (17th) showed that officials were cautious about the risk of excessive tightening. The market therefore interpreted the central bank’s attitude as a moderate dovish, and the dollar pared gains. In addition, the minutes of the meeting also mentioned an important debate aspect, that is, “when to slow down the pace of interest rate hikes.”

Nonetheless, analysts believe that the market should focus more on the “must keep raising interest rates” argument than on those parts. “Apart from the part that slowed the pace of rate hikes, everything else in the minutes was very hawkish,” said Win Thin, head of global currency strategy at Brown Brothers Harriman.

Chances of a three-yard rate hike in September fell to 42 percent after the minutes were released, from 52 percent earlier on Wednesday, and now have a 58 percent chance of a two-yard hike.

In terms of economic data, the number of Americans receiving unemployment benefits last week fell for the first time in three weeks, and was lower than market expectations, the labor market remained solid, and the Philadelphia Fed manufacturing index also unexpectedly increased in August.

Suppressed by the strong dollar, the euro fell 0.88% to $1.0088, the lowest since July 18, the pound also fell 1% to $1.1926, the lowest since July 22, and the yen fell 0.58% against the dollar to 135.87 Yuan.

As of Friday (19th) Taiwan time about 6:00 Price:

The dollar index was at 107.51. +0.7943% EUR/USD (EUR/USD) was quoted at 1.0087 USD. -0.8746% GBP/USD (GBP/USD) was quoted at $1.1929. -0.9795% The Australian dollar against the US dollar (AUD/USD) was quoted at 1 Australian dollar to 0.6914 yuan. -0.2884% The US dollar against the Canadian dollar (USD/CAD) was quoted at 1.2945 Canadian dollars per US dollar. +0.2556% The US dollar against the Japanese yen (USD/JPY) was quoted at 135.87 yen. +0.5848%

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