something similar happened in the euro zone, where a survey-based indicator of activity rebounded to its highest level in nine months. The Purchasing Managers’ Index (PMI) of the rating agency S&P Global marked 52.3 points in February and accumulated four months of growth.
Signs of economic strength led traders to trust in further interest rate hikes from the Federal Reserve on Tuesday, sending the US stock index The S&P 500 fell 2%, the Dow Jones 2.1%, the Nasdaq 2.5%, while the dollar rose 0.3%.
This Wednesday, the euro it loses 0.2% and trades at $1.0627, just above Friday’s six-week low of $1.061.
He dollar index rises 0.2% and reaches 104,265 units, not far from the six-week high of 104.67 reached at the end of last week. Thus, he scores 2 days on the rise.
Investor attention is now focused on the publication of the minutes of the most recent meeting from the federal reserve which will be released this Wednesday afternoon and could offer more information on the plans of the authorities in charge of monetary policy.
In early February, the publication of a report on the employment in the United States was dollar rally triggerwhich has been helped by a series of robust data and So far this month, it has recorded a rise of 2%.
On Tuesday, traders were forecasting the Federal Reserve’s main interest rate to rise to a peak around 5.35% in Julyaccording to Refinitiv data based on the derivatives market.
In early February, expectations were for a high of just under 5%.. The Fed has raised rates to a range of 4.5% to 4.75%, from 0% to 0.25% in March 2022.
Investors have also increased their bets on ECB rates. On Wednesday, the Deutsche Bank He said he now expects rates to rise to 3.75%, having previously expected them to rise to 3.25% from their current level of 2.5%. In the same sense, it was stated Goldman Sachs, who said that he expects the entity to raise the rate again and take it to 3.5%.
The dollar fell 0.1% against the Japanese currency, to 134.85 yen, after rising more than 0.5% on Tuesday. The pound it was down 0.26% at $1,208 after rising 0.6% on Tuesday after British survey data was also strong.
Source: Ambito
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