Huitong.com May 26th - US dollar index hit a one-month high on Monday (May 25th), after the rise of the US core consumer price index (CPI) higher than expected, enhancing the possibility that the Fed will raise interest rates later this year. Trading is light today, with most European markets and the United States closed for holidays. The U.S. dollar index rose 0.3% to 96.475, hitting a one-month high.
Traders said Fed Chairman Yellen's remarks about a rate hike in 2015 also boosted dollar popularity.
Euro fell to a one-month low of 1.0959 against the dollar, with some accusing the victory of Spanish anti-holiday parties as a factor. Worries about Greece's inability to repay debts due to a financial crisis next month also put pressure on the euro. The euro fell 0.4% against the US dollar at the end of the trading session to 1.0974.
USD 0 traded near a two-month high of 121.78 yen after jumping from a low of 120.64 hit on Friday, boosted by a rise in U.S. Treasury yields. A breakthrough of 122.04 will bring the US dollar to its eight-year peak.
USD 0 against the Canadian dollar rose slightly on Monday, mainly boosted by a strengthening US dollar, while the strengthening of crude oil prices did not support the Canadian dollar. Canadian stocks were supported in the early trading due to higher energy stocks, but gave up the gains in the late trading. The US dollar against the Canadian dollar was 1.2310. "I expect interest rates to continue to rise, and the upward trend of the dollar will continue," said Marshall Gittler, head of Forex Strategy at
IronFX Global. Data released on Friday showed that the core CPI of the United States, excluding food and energy costs, rose 0.3% in April, the largest increase since January 2013 and 0.2% in March. "Whether the dollar can break through the 122.04 yen mark depends on U.S. economic data to be released in the future. While it is unlikely that interest rate hikes in June are expected to be supported by Friday's CPI data, the vision of the Federal Reserve hinting at its June meeting will heat up," said Junichi Ishikawa, a market analyst at Tokyo-based Securities in June. "Highlights to the U.S. economy is not as strong as some have expected, crushing market expectations that the Fed will raise interest rates earlier this year, prompting investors to push their interest rate hikes to September or even later.
However, the sporadic data released this month are relatively optimistic, showing that the US economy still outperforms other developed economies such as the euro zone and Japan.
FPG Securities President Koji Fukatani said, "Funds flow back to the US dollar. The US dollar has been suppressed recently due to the uneven economic data and the decline in the possibility of early interest rate hikes. The speeches of policymakers have boosted the US dollar. The possibility of the Federal Reserve raising interest rates in June has faded, and the possibility of interest rate hikes in September or even later has weakened for a while, but such pessimism has faded." The hourly chart of the
US dollar index shows that
Beijing time 5:35 US dollar index was 96.39/41. The copyright of the content of
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