© Reuters
Investing.com – Update to the report at 22:25 Saudi time
After the Fed Chairman spoke about the possibility of raising interest rates again if necessary, and indicating that inflation had deceived the Fed in the past, the US dollar index returned to a strong rise to record 105.770 points.
Statements details:
Updated at 18:21 pm time
The dollar index turned lower after it was high immediately after the issuance of important statements by members of the US Federal Reserve.
The index now records a decline of 0.11% to 105.33 points.
To read the statements issued recently:
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The US dollar fell in early European trade on Wednesday, giving up some of the previous session’s gains, but activity is limited as traders look for more monetary policy signals from speeches by a series of central bankers, including Federal Reserve Chairman Jerome Powell. .
At 12:00 Riyadh time, the dollar index, which tracks the US currency against a basket of six other currencies, fell 0.01% to 105.440, after rebounding from a two-month low of 104.84 earlier in the week.
Powell speaks again
The dollar suffered a sharp sell-off last week amid growing confidence that the Fed has ended its rate-hiking cycle, but there was a degree of consolidation this week after a number of Fed spokesmen warned against complacency.
“An interest rate drop is not something that is likely to happen in the short term,” US Federal Reserve Bank of Philadelphia President Patrick Harker said on Wednesday.
However, trading is likely to be quiet on Thursday as the Fed chair is scheduled to speak again on Thursday, after steering clear of key monetary policy topics at Wednesday’s event.
“Fed speakers will remain the main topic today, and perhaps for the rest of the week given the quiet US data calendar,” analysts at ING said in a note.
Europe is also looking to spokespeople for central banks
It’s a similar story in Europe, with the European Central Bank’s chief economist and the Bank of England’s chief economist scheduled to speak on separate occasions, with either comment likely to impact the market given the bare economic calendar.
It also traded flat at 1.0707, stabilizing after weakness in the previous session as the Eurozone fell by 0.3% m/m in September.
It also traded largely unchanged at 1.2284, after earlier in the week reaching a seven-week high above 1.24.
Declining Chinese inflation affects the yuan
2111 rose in Asia, by 0.1% to 7.2856, after Chinese government data showed inflation contraction in both the index and in October. .
The readings showed that China entered a decline in inflation for the second time this year, as repeated stimulus measures from Beijing failed to support spending effectively.
It fell 0.1% to 150.93, retreating from the 151 level, which was briefly breached last week after cautious signals from .
Traders remain on guard about any potential government intervention in foreign exchange markets, with the currency now trading near levels last seen during the start of the lost decade in the early 1990s.
It rose by 0.2% to 0.6414, with the Australian dollar stabilizing after accommodative signals caused sharp losses this week.
2023-11-09 19:29:00
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