Xinhua Finance and Economics, New York, January 9 (Reporter Liu Yanan) As the market pays attention to the U.S. inflation data and the direction of the Federal Reserve's monetary policy, the U.S. dollar rose against a basket of currencies on the 9th.
The U.S. dollar index, which measures the greenback against six major currencies, was 035%, closing at 102570。
Forex broker Monex America said earlier in the day that the current market sentiment is mainly driven by last week's data, which seems to directly make the market worry that the Federal Reserve may not cut interest rates for longer. The Fed really seems to be taking a "wait-and-see" approach to look for signs that it might sound the alarm and put it on a more dovish stance.
Monex America said that there was no major economic data released on the same day, which will not provide any useful clues in the direction of the Fed's monetary policy, and the US consumer ** index to be released on the 11th will be a risk event.
FX News** Vladimir Zernov, a market analyst at FXMich, said on the day that the dollar index ** as traders believe that the Fed may not be as previously expected. EURUSD emerged** after the release of disappointing industrial production data in Germany.
Federal Reserve Governor Michelle Bowman said on the 8th that U.S. monetary policy has been tight enough and hinted at a willingness to support an eventual interest rate cut as inflation falls.
Bipan Rai, head of North American FX strategy at Canadian Imperial Bank of Commerce Capital Markets, said that throughout December 2023, the theme of the market was the Fed's monetary policy pivot amid weaker data. At the moment, the market is pricing in significant easing at the Fed's March meeting, with some deviation in risk-reward. It is possible that some market participants saw this and closed their short positions in the US dollar, which were launched in December 2023.
Kamal Sharma, head of G10 currency research at Bank of America Global Research, believes that the market is still trying to figure out the trajectory and timing of the Fed's first rate cut. In the benchmark scenario, a soft landing for the U.S. economy, a weaker U.S. dollar, and a "bull steepening" in Treasury yields should be more supportive for risk assets overall.
As of the end of the New York exchange market, 1 euro is exchanged for 1$0926, down from $1 in the previous session0961 USD;1 pound to 1$2,700, down from $1 in the previous session$2759.
1 dollar for 14454 yen, up from 144 in the previous session11 yen;1 USD to 0CHF 8,522, up from 0CHF 8469;1 dollar for 1C$3,396, up from 1CAD 3351;1 dollar for 10SEK 2,647, up from SEK 10 in the previous sessionSEK 2328.
Editor: Tan Rui.
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