The U.S. dollar index closed at a two-week low on Thursday (21st), while the euro fluctuated higher after the European Central Bank (ECB) raised interest rates by 2 yards.
The ICE U.S. Dollar Index (DXY), which tracks the greenback against six major currencies, was down 0.45% at 106.59 in late New York trade, closing at a more than two-week low.
The European Central Bank announced on Thursday that it would raise the deposit rate by 50 basis points (2 yards) to 0%. It was the first rate hike in 11 years, and the magnitude was greater than the forward guidance. The euro jumped in the short term and hit a new high in nearly two weeks. oscillating trend. The euro was up 0.46% at $1.0226 by the time of writing.
Karl Schamotta, chief market strategist at Corpay, said the ECB’s demonstrated flexibility and willingness to go beyond its own forward guidance showed that the hawks had gained control of the Governing Council.
In addition to raising interest rates, the ECB agreed to a new bond-buying program to provide additional aid to more indebted member states, including Italy, in a bid to drive down borrowing costs and limit “financial fragmentation”. ).
John Doyle, vice president of U.S. trading at Monex, said the gut reaction to a stronger euro was correct as the ECB’s actions narrowed the policy gap with the Federal Reserve. However, Michael Brown, head of market intelligence at Caxton, believes that the euro’s gains may only be temporary given the growing risk of recession in the euro zone.
In other news, after a 10-day interruption, the Nord Stream 1 pipeline connecting Russia and Germany resumed gas supply on Thursday (21st), and German regulators confirmed that natural gas supply has returned to 40% of the level before maintenance, temporarily lifted Natural gas supply crisis.
Traders also paid close attention to the political situation in Italy. After the disintegration of the solidarity coalition supporting the coalition government, Prime Minister Mario Draghi submitted his resignation again on Thursday, which will lead Italy to an early election. The uncertain political and economic situation caused market volatility. .
USD/JPY was down 0.64% at 137.35 yen. The Bank of Japan maintained its ultra-loose monetary policy as expected, even raising inflation expectations, still running counter to the global trend of policy tightening.
Sterling was up 0.11% at $1.1990. With Boris Johnson stepping down as prime minister, traders focused on the prime ministerial battle between former UK chancellor Rishi Sunak and foreign secretary Liz Truss.
In cryptocurrency markets, bitcoin fell about 0.8% to $23,161. When Tesla announced its latest financial report yesterday, it said that the company has sold about 75% of its bitcoin assets.
As of Friday (22nd) Taiwan time about 6:00 Price:
The dollar index was at 106.6088. -0.4080% The euro against the US dollar (EUR/USD) was quoted at $1.0225 per euro. +0.4519% GBP/USD (GBP/USD) was quoted at $1.1990. +0.0918% The Australian dollar against the US dollar (AUD/USD) was quoted at 1 AUD=0.6933. +0.6679% The US dollar against the Canadian dollar (USD/CAD) was quoted at 1.2867 Canadian dollars per US dollar. -0.1242% The U.S. dollar was quoted at 137.34 yen against the Japanese yen (USD/JPY). -0.6367%