The dollar rise in Asia on Monday morning; Approximately three weeks maximum with the euro in the previous week. Investors continued to study the ECB’s false turnaround; Experts say that further short-term gains are unlikely. The reason for this is that the dollar supported the inevitable interest rate of the U.S. Federal Reserve. The U.S. dollar index, which tracks the dollar’s exchange rate against a basket of other currencies, rose to 95,545, for a total of 0.07%. USD/JPY pair advanced 0.07% to 115.28.
The AUD/USD pair increased to 0.7078, a total of 0.04%. Australia released retail data earlier in the day. The NZD/USD pair fell to 0.6616, for a total of 0.05%. The USD/CNY pair dropped to 6.3328, down 0.44%. According to China data, Caixin Services Purchasing Managers Index was 51.4 in January. The GBP/USD pair failed to 1.3527, a total of 0.02%.
Investors are now waiting for U.S. inflation data; Including the consumer price index; Which is scheduled to be published on Thursday. A strong reading could boost bets on the Federation raising interest rates in March 2022. The euro was trading at $1.1451. This figure was not too far from the previous week of $1.4183, as well as the figure reached in mid-January 2022.
Dollar Rises
The dollar, meanwhile, was late in strengthening due to solid jobs in the U.S. over the weekend. According to the report, non-farm payrolls in January were 467,000; And the unemployment rate was 4%. Some investors believe that the U.S. currency may make further gains. Experts see the risk of more dollar growth shortly; If interest rates markets are more likely to rise by 50 bp in March. However, the return of the ECB president suggests that any rise in the dollar will be curtailed. In the short term, because of little new information coming out of Europe this week; Likely to further increase market prices for ECB growth; Further growth of the euro is unlikely.
Markets are rated one in three; For the Fed to start raising interest rates in March, with a reasonable chance; Rates should reach 1.5% by the end of 2022. U.S. two-year earnings were higher, hitting a two-year high of 1.32% on Monday; While the benchmark 10-year yield was 1.9049%. Investors are now looking forward to week-long speeches by the ECB, the Bank of England, the Federation, the Reserve Bank of Australia, and the Bank of Canada. Most experts expect growth in the fourth quarter of 2022.
