The dollar records a downward trend this Thursday, July 6, as investors awaited US labor market data after the publication of the June meeting minutes of the Federal Reserve on Wednesday. The documents revealed that most of the US central bank officials anticipate further tightening of monetary policydespite having kept interest rates stable last month.
As a result, the dollar experienced on the eve a slight increase along with Treasury yields, while stocks experienced a drop. Expectations grew that the Federal Reserve would resume its rate hikes this month and that interest rates would remain high for a considerable period to control inflation.
The dollar index which had risen 0.2% on Wednesday, it fell 0.3% to reach 103.03 points. According to CME’s FedWatch tool, there is an 85% chance that the Federal Reserve will raise rates by 25 points basics during your next monetary policy meeting.
As soon as to japanese yenwas strengthened more than 0.5% against the dollar, reaching 143,835 yen. This rebound in the Japanese currency was due to concern for the prospects of global growth, derived from the restrictive measures adopted by the main central banks. This risk averse environment affects the appetite for riskier assets.
for his parte, the pound sterling hits two-week highs against the euro and the dollar. Financial markets are betting that the Bank of England raise rates to 6.5% early next yearwhich has boosted the yield of government bonds two years to its highest level since June 2008.
In the offshore market, the Chinese yuan traded at 7.2471 units per dollarafter having experienced a fall of 0.4% in the previous session. China’s central bank set a stronger-than-expected midpoint for four consecutive days this week, which traders interpret as an attempt to prevent excessive depreciation of the yuan.
In the field of cryptocurrenciesBitcoin reached its highest level in 13 months, reaching $31,500. This upward trend is due to the interest generated by the recent plans of the fund managers to launch an exchange traded fund (ETF) of bitcoin in the United States. This fact provided additional support to BTC in the markets.
Source: Ambito
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