The movement to buy dollars has been increasing recently. It is pointed out that the rate hike rate of the US FOMC is relatively faster than that of other major central banks as a material for aggressive dollar buying. The Eurodollar plunged to the 1.02 level yesterday, but there was widespread belief that the ECB’s rate hike would slow down as Europe’s economic slowdown was wary of the background.
On the other hand, as a negative dollar buying material, it is pointed out that there is a movement to avoid risks due to the low stock prices and low crude oil prices. Major government bonds have been bought as safe assets, and funds are concentrated on the dollar as US bond yields decline. While the dollar-yen pair was sluggish yesterday, the euro-dollar pair, the pound-dollar pair, the Australian dollar / dollar pair fell, and the cross-yen pair also fell.
The stock market has been unstable at the moment, and the yield on 10-year US Treasury bonds is at a low level of around 2.8%. Trading continues while keeping an eye on the movement of European stocks, US stock futures and after-hours trading. In terms of the above-mentioned aggressive dollar buying, the minutes of the US FOMC will be released in the afternoon of NY. It is expected that a bullish stance will be maintained that surpasses other major central banks.
Economic indicators to be announced in overseas markets after this include the Eurozone retail sales (May), the US MBA mortgage application index (weeks up to 1st), and the US ISM non-manufacturing business index (June). The US ISM non-manufacturing economic index is expected to be around 54.0, down from the previous 55.9.
The USD will continue to rise, but watch out for changes in the US ISM non-manufacturing economic index (June) and FOMC minutes.