Consequentlythe dollar on Thursday starred in its biggest daily decline since the end of 2015 for him collapse of the performance of Treasury bondwhile other currencies – the yen and the pound sterling, in particular – soared.
In parallel, stocks soared in wall streetin particular the technological ones, which have just experienced falls of up to 24% after the publication of their quarterly balance sheets, saw the data with relief, because it may imply a more slight rise in interest rates by the Federal Reserve.
The risk appetite of investors received a extra boost when the health authorities China eased some of the strict restrictions imposed by COVID-19 in the country, including reducing quarantine times for close contacts of cases and incoming travelers.
The dollar index falls almost 0.9%, while risky assets such as stocks, emerging market currencies and commodities rose. However, the inflation slowdownalthough positive for borrowers, reflects a slower economic environmentaccording to analysts.
“It can be a bit dangerous in the sense that the ‘bad news’ is still out there and could come back to burn us, particularly regarding the Fed,” he said. Jane Foley, currency strategist at Rabobank, in dialogue with Reuters.
The dollar is up 12% this year against a basket of six major currencies, in light of the Fed’s determination to bring back inflationn -which almost reached double digits at the beginning of the year- to your 2% target.
Other central banks have followed suitwith the exception of the Bank of Japan, and, as a result, the yen has experienced its biggest decline against the dollar since 1979. The greenback, which has risen in value 22% Against the yen this year – its biggest advance since 24% in 1979 – it is down 0.9% against its Japanese pair at 139.74 yen.
The British pound gains 0.2%, at $1.1733after starring in the day before his biggest daily profit since 2017, and the euro extends its rise of 2% from the previous day and improves 0.7% to $1.0274trading around your maximum since august.
Source: Ambito
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