EUR/USD 1.17406
0.208%
Gold 3885.61
0.761%
Oil 60.525
0.064%
USD/JPY 147.454
0.139%
GBP/USD 1.34825
0.330%
GBP/JPY 198.810
0.472%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On October 4th, Hongmeng Intelligent Driving announced that it had received 18,500 pre-orders for its entire lineup during the first three days of the National Day holiday (October 1st-3rd). Among them, 5,800 were for the Wenjie M7, 2,700 for the Zhijie R7, 2,100 for the Shangjie H5, and 1,500 for the Xiangjie S9T.On October 4th, local time, hundreds of protesters gathered outside a U.S. Immigration and Customs Enforcement (ICE) facility in Broadview, Illinois, a suburb of Chicago, clashing with law enforcement officers and resulting in multiple arrests. This follows numerous previous clashes between protesters and ICE officers in the area. Since the Trump administration took office, it has stepped up its crackdown on illegal immigrants. Protesters have repeatedly blocked vehicles transporting detainees to the ICE facility in Broadview. The U.S. government has responded by stating that it will not tolerate rioters using violence to prevent law enforcement.On October 4th, Zeekr Technology and Geely Auto filed a Form CB with the U.S. Securities and Exchange Commission (SEC) regarding the merger of Zeekr Technology and Geely Auto on October 1st. The attachments to this Form CB include a sample consideration election form, which Geely Auto will mail to Zeekr Technologys common shareholders through an intermediary on September 30, 2025 (U.S. time), and a sample ADS consideration election document, which will be mailed to distribution agents of stockbroking firms. Zeekr Technologys common shareholders and ADS holders will be required to elect to receive Geely Auto shares or cash in the merger transaction in accordance with the terms of the consideration election document they receive.Conflict Situation: 1. Russia claims to be advancing on all fronts, while Ukraine claims to be launching attacks from multiple directions. 2. Energy facilities in multiple locations in Ukraine have been attacked, and power restrictions have been implemented in some areas. 3. Russian Defense Ministry: Russian air defense systems shot down 20 Ukrainian drones over multiple regions. Other Situations: 1. Ukraine announced the severance of diplomatic ties with Nicaragua. 2. Putin refuted claims that Russia would attack NATO members. 3. The Dutch Prime Minister stated that he would not rule out the possibility of circumventing Hungary to pass sanctions against Russia. 4. The European Council extended its sanctions regime against Russia for one year. 5. The EU extended sanctions against certain Russian individuals until 2026. 6. The Kremlin: The US has not yet responded to Russias proposal regarding the New START Treaty. 7. The Russian government approved the extension of restrictions on imports and exports to unfriendly countries. 8. Hungarian Prime Minister: The EU should establish a partnership with Ukraine rather than accept its membership. 9. According to the Financial Times: Sources said that Trump still opposes using US taxpayers funds to aid Ukraine, and prefers NATO allies to buy weapons from Washington and then ship them to Kyiv.The Dow Jones Industrial Average closed up 238.56 points, or 0.51%, to 46,758.28 on Friday, October 3; the S&P 500 closed up 0.44 points, or 0.01%, to 6,715.79 on Friday, October 3; and the Nasdaq Composite closed down 63.54 points, or 0.28%, to 22,780.51 on Friday, October 3.

As Fed Hawks Push The Market, The US Dollar Index (DXY) Rises To A Six-Week High Over 104.00

Daniel Rogers

Feb 17, 2023 14:29

 US Dollar Index.png

 

The US Dollar Index (DXY) posts slight gains near 104.15 in early Friday trading as bulls flirt with the six-week high. Nonetheless, the hawkish Federal Reserve (Fed) statement and favorable US statistics, as well as US-China tensions, could be viewed as having played key roles in illustrating the DXY's three-day gain.

 

Wednesday drew major attention to the US Producer Price Index (PPI) for January, as its 0.7% MoM increase was the biggest since June. The improvement in US Initial Jobless Claims for the week ending February 10, which came in at 194K compared to 200K expected and 195K prior, was very positive. In contrast, the fall in Housing Starts in January and the Philadelphia Fed Manufacturing Survey in February appear to have received attention.

 

Following the release of the data, James Bullard of the Federal Reserve Bank of St. Louis and Loretta Mester of the Federal Reserve Bank of Cleveland expressed their hawkish inclination and supported the dollar. Bullard of the Federal Reserve noted, "Continued policy rate rises can help lock in a disinflationary trend in 2023, even with steady growth and robust labor markets, by maintaining low inflation expectations." In a similar spirit, Fed's Mester stated that the Fed will need to rise beyond 5% and maintain that level for some time. The policymaker stated that she cannot predict if the Fed would demand a greater rate hike at the next policy meeting, but she does not intend to surprise the markets.

 

Notably, the most recent FEDWATCH data from Reuters says that interest rate futures imply US interest rates could peak near 5.25 percent in July before declining to 5 percent by year's end. The same signals a greater policy reversal than the Fed's peak of 5.10% in December, which in turn suggests a few more rate hikes from the Fed and supports US Dollar bulls.

 

On a separate page, the fresh US-China tensions and Russia's determination to back down when it comes to attacking Ukraine weigh further on risk appetite and the EUR/USD exchange rate as demand for the US Dollar rises. During an interview with NBC News, Vice President of the United States Joseph Biden launched shots at his Chinese counterpart and expressed his hopes for a chat with the Chinese leader. According to Reuters, US President Biden added, "I don't believe Xi intends to fundamentally sever ties with the United States and with me."

 

Wall Street ended with a loss, while S&P 500 Futures were down 0.30 percent intraday at the time of publication. The yields on 2-year US Treasury notes increased to their highest levels since November 2022, completing the day at 4.64 percent. The yields on 10-year US Treasury bonds reached their highest levels in 2023 with the most recent reading of 3.86 percent.

 

A light calendar on Friday should give the DXY bulls the upper hand ahead of next week's Monetary Policy Meeting Minutes for the Federal Open Market Committee's (FOMC) most recent activity, given the added fire to the hawkish Federal Reserve worries, supported by solid US data.


Suggestion