In the overseas market yesterday, the Governor of the Philadelphia Federated Bank showed a negative attitude toward the 0.5% rate hike in March. He also envisioned a 0.25% rate hike about four times a year. The strong tightening observations in the market have been eased, and the dollar has been depreciating along with the rise in stock prices.
And tomorrow, the Central Bank and the ECB will announce monetary policy. The market is incorporating additional rate hikes by the UK and Central Banks. As for the ECB, there is a movement to incorporate a rate hike within the year. Inflation has been prolonged at the moment, and the situation is superior to the tighteners. In that respect, the Eurozone consumer price index / preliminary figures (January) announced today will be the focus of attention.
In the foreign exchange market, the pound, which incorporates additional interest rate hikes, is strong. The euro has followed suit and is showing a solid footing against the dollar. The dollar-yen pair’s topside has become heavier as the US dollar’s interest rate hike has receded. However, the US interest rate hike route is solid, and the difference in monetary policy between Japan and the US is a powerful source of support for the dollar and yen.
Since the interest rate hike of 0.5% has already been factored in in March, the situation is that USD sales are coming out due to the denial of this.
However, since the big interest rate hike trend will continue, it is unlikely that USD selling will continue endlessly.
