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Fed may raise rates by 75 basis points to slow pace of tightening

Today on Monday (June 27), the US dollar opened at 104.12 and closed at 104.12 yesterday. So far, the highest has touched 104.14 and the lowest has been 103.95. Temporarily reported 104.00, down 0.12%. The euro and the dollar were temporarily reported at 1.0559, an increase of 0.09%; the dollar and the Canadian dollar were temporarily reported at 1.2902, an increase of 0.06%.

In early Asian trading on June 27, the U.S. dollar index was trading around 104.10, as traders scaled back bets on a possible peak in interest rates and advanced expectations for the timing of interest rate cuts in response to a possible recession. U.S. federal funds futures priced in on Friday, with a 73 percent chance of a 75-basis-point rate hike at the July meeting .

The US dollar index rose on Friday and encountered resistance below 104.55, and fell above 103.90 to be supported, which means that the dollar may maintain its upward trend after falling. If the dollar index fell today to be supported above 103.90, the target for the market outlook will point to 104.50–104.80. Today, the short-term resistance of the US refers to 104.20–104.25, and the important short-term resistance is 104.45–104.50. Today, the short-term support of the US refers to 103.90–103.95, and the important short-term support is 103.60–103.65. Europe and the United States fell on Friday to be supported above 1.0510, and rose to meet resistance below 1.0575, which means that Europe and the United States may maintain a downward trend after a short-term rise. If Europe and the United States meet resistance below 1.0580 today, the target for the market outlook will point to 1.0515–1.0485. Today, the short-term resistance in Europe and the United States is at 1.0575–1.0580, and the short-term resistance is at 1.0605–1.0610. Today, the short-term support in Europe and the United States is at 1.0440–1.0545, and the important short-term support is at 1.0515–1.0520.

The greenback, which is up about 9 percent this year, has lost some of its shine since investors began betting that the Federal Reserve could slow the pace of tightening after another 75 basis point hike in interest rates in July. They now see rates peaking at around 3.5% in March next year and falling by nearly 20 basis points by July 2023. But Fed Chairman Jerome Powell said on Thursday that the central bank’s commitment to reining in the highest inflation in 40 years was “unconditional”, even as he acknowledged that sharp interest rate hikes could push up unemployment. And Governor Bowman last Thursday called for a more aggressive path of rate hikes than most of her peers are currently considering, saying she wants to keep raising rates until they beat short-term inflation expectations.