The dollar market remains high, and this week’s US FOMC is likely to raise interest rates by 75bp
In the foreign exchange market at the beginning of the week, the dollar exchange rate remained high. The dollar/yen exchange rate was pushed down to around 142.65 at times, but is currently holding steady at the 143 yen level. After temporarily buying around 1.0029, the euro/dollar broke parity again and softened to the 0.9980 level. […]
Strong dollar movements even after passing the US FOMC minutes
Yesterday’s US FOMC meeting minutes are from when it was decided to raise interest rates by 0.75%. Strong measures to curb the current high inflation are advocated. Among them, the market reacted to words such as “recognition that the pace of interest rate hikes will slow down at some point, and recognition of the risk […]
Increased volatility in the dollar-yen exchange rate, unstable interest rate outlook, and Taiwan issue
Recently, the volatility of the dollar-yen exchange rate has increased. After peaking at the 139.39 level last week, it has fallen sharply to the 130.41 level this week. And today it bounces back to the 133.90 level. In the first place, the fluctuation range from the beginning of the year is 25.92 yen, which is […]
Next to the US FOMC, what about the US second quarter GDP preliminary figures and recession concerns?
After passing the US FOMC, the US second quarter GDP preliminary figures will be announced today. Fed Chairman Jerome Powell toned down the hawkish tone, saying, “It is appropriate to curb rate hikes from a certain point in time,” and “it depends on the data whether to repeat unusually large rate hikes.” The market is […]
Today’s FOMC will be celebrated amid growing concerns about recession
If US monetary authorities bring a surprise to the bond market, it will give a clearer view of how much more policy rates should be raised to stabilize prices. The Federal Open Market Committee (FOMC), which announces the results on the 27th, raised interest rates by 75 basis points (bp, 1bp = 0.01%) for the […]
The dollar will continue to depreciate, or the US index will not be strong.
Recently, the dollar index has been on a downward trend. Following the sharp rise in the US consumer price index, the market has begun to factor in a 1.00% rate hike for the US FOMC. At this time, the dollar’s appreciation peaked out. There was also a symbolic phenomenon such as the Eurodollar parity cracking. […]
Last week, a series of weak PMI announcements
In the latter half of last week, weak PMIs from Europe and the United States were announced one after another. The market was nervous each time, with the worsening business sentiment in Europe such as Germany selling euros and buying dollars, and the sharp deterioration of US non-manufacturing PMI selling dollars and buying euros. The […]
Will continue to collect funds in dollars, or today’s FOMC minutes
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 […]
FOMC, 75bp rate hike-July is likely to be 75 or 50bp and Fed chairman
At a regular meeting held on the 14th and 15th, the US Federal Open Market Committee (FOMC) decided to raise the main policy interest rate by 75 basis points (bp, 1bp = 0.01%). This is the largest rate hike since 1994. Federal Reserve Chair Powell has suggested that the July meeting will also raise rates […]
Today is the US FOMC meeting, focusing on the pace of future rate hikes
The results of the US FOMC meeting will be announced today. The economist’s forecast in advance is that a rate hike of 0.50 percentage points is likely. However, in the money market, a larger 0.75 percentage point rate hike has been factored in by 96%. There is also a view that the rate will be […]