On Thursday (July 7), the US dollar opened at 107.06 and closed at 107.07 yesterday. As of now, the highest has hit 107.13 and the lowest has been 107.01. Temporarily reported 107.05, down 0.02%. GBPUSD temporarily reported 1.1916, down 0.04%; Canadian dollar and us dollar temporarily reported 0.7664, down 0.04%
In early Asian trading on Thursday (July 7), the U.S. dollar traded around 107, and the pace of aggressive U.S. interest rate hikes and risk aversion drove the U.S. dollar higher; the minutes of the Fed meeting showed that the July rate hike was 50 basis points and 75 basis points All possible, this fact shows that the Fed has acknowledged the impact of interest rate hikes on the economy; the euro has been dragged down by worries about the European energy crisis, and the euro has continued to fall against the dollar, hitting a new low in two decades.
Fed officials at the June meeting believe that the July meeting may be suitable for raising interest rates by 75 basis points or 50 basis points; it will take time for inflation to fall to 2%, and interest rate hikes may lead to a period of economic slowdown, but the key to full employment is to reduce inflation; At present, there is a deep-rooted risk of high inflation. We are worried that the CPI in May indicates that inflation will last longer than previously expected; if inflation expectations are out of control, lowering inflation will pay a higher price.
The main tone of the Fed minutes: continue to build momentum for aggressive interest rate hikes in July
As we all know, the Fed announced a rate hike of 75 basis points at its June interest rate meeting, the largest rate hike since 1994. In the face of such an aggressive rate hike that has not been seen in this century, it is naturally impossible not to be hawkish by listing the details of the meeting at that time: The Fed must explain to the public that it was necessary to take this additional tightening action at that time. .
The minutes of the Fed meeting released last night underlined this. Even as the U.S. economy slows, interest rates may still need to keep rising for longer to prevent high inflation from becoming entrenched, the minutes showed.
The 18 officials who participated in the decision-making meeting in June reached a rare consensus at the time, minutes of the meeting showed. Of the 11 voting members (including newly appointed governors), only Kansas City Fed President George voted against — in favor of a smaller 50 basis-point rate hike. All other officials, including non-voting officials, supported a 75 basis point hike.
Analyst Steve Matthews said that the overall framework of the Fed’s policy discussions seems very hawkish. Officials are not worried about a recession and are very concerned about inflation — not too surprising considering the meeting resulted in the largest rate hike since 1994. “