Dollar short settle down, to confirm the direction of tapering in the minutes of the US FOMC

The recent depreciation of the dollar in the NY market yesterday has stopped. Although US retail sales were weak, the dollar was bought as US bond yields rose. In the Tokyo market, the dollar / yen pair has maintained a steady movement in the upper 109 yen range. On the other hand, other major currencies such as the euro dollar and the pound dollar have some adjustments in dollar buying. However, it is not enough to erase the strong dollar in the NY market the day before. Generally, it is a trend in the strong dollar zone.

The minutes of the US FOMC will be released today. Roughly speaking, the tapering discussion will start within the year, and the pace of bond purchases will start to shrink next year. Fed Chair Powell seems to be playing a role in tightening the reins, and has successfully controlled the growing number of hawkish rampage horses. It seems that the US stock market has successfully digested the tapering observations and continued to hit highs. Dialogue with the market seems to be reasonably successful. Today we will confirm the content of the discussion.

The movement of the New Zealand shock was seen yesterday. The outbreak of the new corona infection for the first time in about half a year triggered NZ dollar sales. After that, the NZ government introduced a three-day lockdown measure. At today’s NZ central bank monetary policy meeting, which attracted attention, the policy interest rate remained unchanged. The NZ dollar was sold momentarily and then immediately repurchased. The central bank’s governor said that the policy interest rate would remain unchanged, but the direction of the interest rate hike was clear. New Zealand, which has a small economy among developed countries, has some aspects that make it easy to respond flexibly, but it seems to be a good example of how to interact with the new Corona.

Today, it seems that dollar buying is taking place due to expectations for the FOMC agenda. This can be dealt with by buying USDJPY obediently.

Today’s daytime surprise is New Zealand. At the NZ Central Bank Monetary Policy Meeting, which was expected to raise interest rates, it was a big shock that the policy interest rate was left unchanged. NZD was looking to buy, but corrected.

After all, with the expansion of Delta shares, I think the United States, New Zealand, and other countries will be far from easing.

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