EURJPY: Asian foreign exchange declined, dollar stabilized after
Most Asian currencies fell on Thursday, while the dollar stopped falling as a series of signals from the Federal Reserve suggested the central bank is likely to keep interest rates high for a while. next.
Weak purchasing managers indexes (PMIs) from Australia and Japan also kept Asian traders in favor of the dollar, as business activity in both countries slowed in February.
The dollar fell after the Fed reiterated its interest rate outlook
The dollar index and dollar index futures were both steady in Asian trading after falling sharply from three-month highs this week, although the possibility of further declines in the greenback now exists. seems limited.
Minutes of the Fed's late January meeting showed that the bank is in no hurry to reduce interest rates in the near future. Speeches by several Fed officials this week also reiterated this stance, with policymakers citing concerns about tough inflation.
This message suggests that traders are continuously reducing expectations for a rate cut in May and possibly June, which bodes poorly for Asian currencies, as the gap between yields Risk and low risk remain narrow.
Weak purchasing managers indexes (PMIs) from Australia and Japan also kept Asian traders in favor of the dollar, as business activity in both countries slowed in February.
The dollar fell after the Fed reiterated its interest rate outlook
The dollar index and dollar index futures were both steady in Asian trading after falling sharply from three-month highs this week, although the possibility of further declines in the greenback now exists. seems limited.
Minutes of the Fed's late January meeting showed that the bank is in no hurry to reduce interest rates in the near future. Speeches by several Fed officials this week also reiterated this stance, with policymakers citing concerns about tough inflation.
This message suggests that traders are continuously reducing expectations for a rate cut in May and possibly June, which bodes poorly for Asian currencies, as the gap between yields Risk and low risk remain narrow.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.