Today on Wednesday (June 29), the US dollar opened at 104.5 and closed at 104.5 yesterday. As of now, the highest has touched 104.52 and the lowest has been 104.40. Temporarily reported 104.49, down 0.01%. The British pound was temporarily reported at 1.2192, an increase of 0.07%; the Canadian dollar was temporarily reported at 0.7761, a decrease of 0.04%.
In early Asian trading on Wednesday (June 29), the US dollar index was trading around 104.50. Both fed officials insisted that there is still hope for a soft landing. Fed Williams said that by the end of this year, interest rates “definitely” need to be at 3 %-3.5%, but he does not expect a U.S. recession; while traders await Fed Chairman Powell’s speech at the European Central Bank Forum.
On June 28, Macro Hive analysts Bilal Hafeez and Dominique Dwor wrote that the Fed may raise interest rates by 75 basis points in July.
Powell and the Fed know they have to control inflation. During questioning by the House Financial Services Committee, Powell stressed that his commitment was “unconditional.” He conceded: “We’re nowhere near our inflation target. We really need to restore price stability and get inflation back down to 2%.
Clearly, the Fed is setting policy based on the latest inflation data. Hot news ahead of the Fed’s most recent policy meeting led it to break the media blackout (as well as March’s forward guidance on 50bps of rate hikes in June and July), announcing a 75bps rate hike ahead of schedule. It’s been going on.
The U.S. dollar index is currently fluctuating around 104.50. Yesterday, it recorded the largest increase since the 8th and refreshed the weekly high. Nonetheless, the dollar is still awaiting key data and events, with bulls taking a breather during the weak Asian session. Also, the return of hawkish Fed bets seems to have reignited yesterday’s dollar buying. U.S. data, along with geopolitical and trade news, appeared to support bullish hopes for the dollar.
US dollar index
The U.S. dollar index fluctuated up yesterday, refreshing a 3-day high, and the current exchange rate is trading around 104.40. In addition to short covering , which provided some support for the exchange rate, the fall in U.S. stocks stimulated the market’s risk aversion, which was the main reason to support the rebound of the safe-haven dollar. In addition, optimistic remarks from Fed officials and investors’ cooling of interest rate hike expectations from the European Central Bank also provided some support for the exchange rate. Focus on the pressure situation near 104.80 today, and the bottom support is near 104.00.