The market price started in May. Will dollar buying continue ahead of this week’s hot event US FOMC? The dollar index’s rise adjusted last weekend, but the dollar has remained firm again at the beginning of the week. Yields on 10-year US Treasury bonds are slowly rising toward a psychological level of 3%. The market has fully factored in the 0.5% rate hike at the FOMC. The focus will be on the pace of future rate hikes.
The global stock market is in an unstable phase. In addition to the recovery from the new Korona-ka, which has stimulated demand, since Russia’s invasion of Ukraine on February 24, it has been hit by bad inflation such as import inflation, cost-push inflation, and supply-constrained inflation due to soaring energy prices. Is the background.
Central banks in each country are required to respond to inflation in the near future and take action not to lose it late in order to pick up the buds of future rising inflation. However, due to bad inflation, there are many headaches such as production bottlenecks and a decline in real household income. It seems that the difference in the physical strength of each country’s economy is highlighted in the exchange rate. With the United States, whose economic power is relatively stable, there is a sense of security in buying dollars.
In the market price last weekend, after the movement of adjustment for dollar buying started, it seems that the movement of dollar buying is likely to precede again at the beginning of the week. However, many markets in each country are closed today due to holidays related to Labor Day. In Asia, China, Hong Kong, Taiwan, Singapore, Malaysia, etc. In Europe, the UK and Ireland will be bank holidays. Russia is also closed. It should be noted that the liquidity of transactions will decrease as the number of participants in transactions decreases.
Basically, we are looking at buying dollars, but today we assume that many countries are closed and it is difficult to make a big move.
