News

Mt4.mt5 foreign exchange European market: the yen hit a 20-year low. Fed officials do not rule out raising interest rates by 75 basis points

发布时间：2022-08-25 浏览：120

Yingwei financial investment Com - in European trading on Tuesday, the US dollar rose slightly, hitting a 20-year high against the yen, as US bond yields rose,

At the same time, the market expected that the US economic data would remain strong, which consolidated the expectation of interest rate hike.

As of 18:35 Beijing time (06:35 a.m. EDT), the US dollar index futures, which measures the trend of the US dollar against six trade weighted major currencies, rose 0.1% to 100.870, rising to 101.010 earlier today, a new high since April 2020.

It is expected that the Federal Reserve will take more radical measures in May after raising interest rates by 0.25 percentage points at its meeting in March, because recent data showed that consumer prices (CPI) rose by 8.5% in March, the fastest annual increase since 1981.

James Bullard, chairman of the St. Lewis fed, said on Monday that the Fed needs to act immediately to raise interest rates to about 3.5%, and does not rule out the possibility of raising interest rates by 75 basis points.

However, Brad pointed out, "at present, raising interest rates by more than 50 basis points is not my basic view. I don't rule out this possibility, but this is not my basic view."

However, the expectation of a substantial interest rate hike still drove us bond yields soaring, and the benchmark yield of US bonds was 2.884%, reaching a three-year high.

Nordea analysts said in a report: "the current market pricing for central bank actions is quite radical, and interest rates have risen rapidly."

Affected by this, the dollar rose to a 20-year high against the yen, up 1.02% to 128.26, not far from the highest level since May 2002.

Contrary to the hawkish position of the Federal Reserve, the Bank of Japan has been intervening in the bond market to keep the yield of Japan's 10-year government bonds below 0.25%.

In other currencies, the euro / dollar rose 0.10% to 1.0790, slightly higher than the two-year low of 1.0756 hit last week; GBP / USD rose 0.1% to 1.3022, slightly higher than the 18 month low hit last week.

The Ukrainian war suppressed the pound and the euro. It is reported that Russia has launched a new offensive in eastern Ukraine.

On Monday, due to the war in Ukraine, the world bank lowered its global economic growth forecast for 2022 from 4.1% to 3.2%, with the European continent suffering the most negative impact.

AUD / USD rose 0.29% to 0.7367. The minutes of the April policy meeting of the Federal Reserve of Australia released earlier on Tuesday said that the bank was close to raising interest rates, and if it did, it would raise interest rates for the first time in more than a decade.