The latest U.S. data showing economic growth maintained a solid pace provided support for expectations that the Federal Reserve will maintain a hawkish stance for a longer period of time, and led to a rebound in the dollar index, while the euro snapped a six-session winning streak.
In late New York trading on Thursday (26th), the ICE U.S. Dollar Index (DXY), which tracks the U.S. dollar against six major currencies, rose 0.15% to 101.80.
According to data from the Department of Commerce, the gross domestic product (GDP) of the United States grew at an annual rate of 2.9% in the fourth quarter, which was lower than the 3.2% in the third quarter, but better than the 2.6% expected by Reuters. In the midst of high inflation and high interest rates Under such circumstances, the U.S. economy continued to grow steadily.
Another data released on the same day pointed out that as of the week of January 21, the number of initial claims for unemployment benefits in the United States decreased by 6,000 to 186,000, far below market expectations. untie.
Stuart Cole, chief managing economist at Equiti Capital, said: “The picture in the U.S. data is a bit mixed. On the one hand, it shows that the U.S. economy remains resilient in the face of the monetary tightening policy implemented by the Fed so far. On the other hand, inventories are at this level. The growth story is a big contributor, but that component is set to weaken this year, reinforcing expectations for the Fed to shift to a quarter-point rate hike.”
The euro fell 0.2% to 1.08919 US dollars, stopping six consecutive gains; USD/JPY rose 0.48% to 130.21 yen.
Markets turned their attention to next week’s meetings of major central banks, including the Federal Reserve and the European Central Bank (ECB). Traders widely expect the Fed to raise interest rates by 1 yard next week, down from 2 yards in December, while the European Central Bank all but promised to raise rates by 2 yards.
Sterling was little changed against the dollar on Thursday, inching up 0.04% to $1.2406, with the pound still on track to end the week slightly higher even as traders worried that the Bank of England (BOE) would struggle to rein in inflation without hurting the economy.
The Aussie rose nearly 0.2 percent to $0.7114, pushing the Australian dollar to a seven-month high during the session on expectations of further interest rate hikes by the RBA after data showed inflation hit a 33-year high in the fourth quarter.
The Canadian dollar rose nearly half a percent against the U.S. dollar on Thursday to 1.3321 Canadian dollars to the U.S. dollar, its highest level in nearly two months. The Bank of Canada raised interest rates a few days ago, as expected, and at the same time sent a signal that the cycle of rate hikes is coming to an end.
Cryptocurrencies were little changed, with bitcoin inching down 0.3 percent to $23,005 and ether inching up 0.3 percent to $1,602.
As of about 8:00 Taiwan time on Friday (27th) Price:
The dollar index was at 101.7444. -0.0753% The euro was trading at $1.0894 to the euro. +0.0753% GBP/USD was trading at $1.2416. +0.0483% The Australian dollar was quoted at 0.7117 US dollar to the US dollar (AUD/USD). +0.0422% The U.S. dollar was trading at 1.3324 Canadian dollars to the U.S. dollar. +0.0375% USD/JPY is trading at 129.74 yen per dollar. -0.3227%