European market Forex: The US dollar rose slightly, the euro fell again to the parity line Provider Investing.com

© Reuters Forex Europe: The US dollar rose slightly and the euro fell back to the parity line just before the opening of the Fed rate meeting

Investing.com – In European markets on Tuesday (September 20), the dollar rose slightly, nearing a 20-year high, amid bets that the Federal Reserve will raise interest rates sharply again.

As of 17:16 Beijing time (05:16 am ET), the US dollar, which measures the US dollar’s trend against six trade-weighted major currencies, rose 0.07% to 109.545; it rose 0.03% to 109.78, after reaching 110.79 on September 7. A decade high. The benchmark US Treasury yield was 3.524%.

The two-day monetary policy meeting will begin tonight, and the bank is expected to continue its policy of raising interest rates to curb overheating inflation.

Investors were expecting a rise of 75 basis points, but some even thought a full percentage point rise was possible as last week showed that inflation remained stubbornly high.

At the same time, the Fed will also release a new batch of forecasts for inflation, economic growth and the future path of interest rates, which are also expected to be closely watched by the market to assess future policy prospects.

Analysts at ABN Amro said, “Having seen the recent developments in the US economy and inflation, we now expect an earlier rate hike from the FOMC and an earlier peak in rates. We expect federal funds (cap) rates to peak at 4% in December instead of February.”

It fell 0.15% to 1.0007 after data showed a record high of 45.8%, with rising energy prices still the main driver.

The European Central Bank hit 75 basis points last week in an attempt to curb near-double-digit inflation, while German PPI data is expected to confirm the ECB’s decision.

Up 0.37% to 143.74, the Yen was further weighed down by its first climb to 3.970% since November 2007.

In addition, a monetary policy meeting will also be held on Thursday, but the bank is widely expected to keep its ultra-easy stimulus policy unchanged.

The policy gap between the Federal Reserve and the Bank of Japan weighed heavily on the Yen, which climbed to 144.99 in early September for the first time in 24 years.

Flat at $1.1430, the pound recovered after falling to a 37-year low of $1.1351 at the end of last week. An interest rate decision will also be announced on Thursday, with another rate rise expected to be 50 or 75 basis points.

It rose 0.1% to 7.0135, still above the psychologically important level of 7, after China left its LPR rate unchanged.

In other currencies, it rose 0.45% to 10.8105, and rose 0.31% to 10.8212, despite a sharp increase of a full percentage point to 1.75%, which was above the market expectation of 75 basis points.

[Daw’r erthygl hon gan Yingwei Caiqing Investing.com, i ddarllen mwy, mewngofnodwch i cn.investing.com neu lawrlwythwch Ap Yingwei Caiqing]

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Collection: Liu Chuan

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