New York: A safe yen and Swiss franc rise on Tuesday, investors are nervous about the sudden hawkish Federal Reserve, which could lead to sharp rate hikes and hinder early economic recovery, and risk appetite plummets. bottom.
Concerns about the new Omicron coronavirus mutant also continued to bid in these safe currencies.
Meanwhile, the dollar retreated after rising on Tuesday, saying it had increased the risk of inflation and proposed to abolish the term “temporary” to describe rising prices. purchase.
According to analysts, his comments suggest the urgency of taking swift monetary policy measures that may not be ready for financial markets.
“Overall, the risk to the short-term outlook continues to grow. Investors have always seen the Fed as a safety net, but the Fed seems to be panicking here,” said OANDA in New York. Edward Moya, Senior Market Analyst, said.
“The Fed was wrong about inflation, and now they’re rushing to taper and seem to raise rates sooner, and continued inflationary pressure accelerates the rate hike cycle that could threaten fiscal conditions. There is a possibility.”
In the second half of the transaction, the dollar fell 0.4% against the yen to 113.065 yen.
The dollar fell 0.4% to CHF 0.9185 against the Swiss franc.
The dollar index fell 0.3% to 95.90. While US stocks fell after Powell’s hawkish remarks, it recovered faster.
Karl Chamotta, Chief Market Strategist at Cambridge Global Payments in Toronto, said:
The yen and the Swiss franc rose against the dollar after the CEO of Modana previously stated that the coronavirus vaccine was as ineffective against the Omicron variant as the other variants.
In addition to concerns, pharmaceutical company Regeneron Pharmaceuticals Inc said on Tuesday that COVID-19 antibody treatment may be less effective against Omicron.
The warning reinforces the view that the global economy may take longer than many expected to return to pre-pandemic levels.
The euro rose 0.4% against the US dollar to $ 1.1335, the largest three-day rise since December 2020.
Prior to the arrival of Omicron, the main impetus for currency movements was the various speeds at which central banks around the world would end the stimulus of the pandemic era and raise interest rates to combat rising inflation without disrupting growth. It was how the traders perceived it.
Cryptocurrencies also had unstable trading sessions. Ethereum was up 4.8% to $ 4,668. Bitcoin was down 0.3% to $ 57,645.
Currency bid price at 4:11 pm (2111 GMT)
Description RICLast US Close Pct Change YTD Pct High Bid Low Bid
Dollar Index 95.859096.1990 -0.34% 6.532% + 96.6470 + 95.5440
Euro / Dollar $ 1.1340 $ 1.1293 + 0.44% -7.17% + $ 1.1387 + $ 1.1235
Dollar / Yen 113.0350113.5300 -0.45% + 9.38% + 113.8900 + 112.5350
Euro / Yen 128.19128.19 + 0.00% + 1.00% + 128.6000 + 127.6500
Dollar / Switzerland 0.91810.9227 -0.49% + 3.78% + 0.9266 + 0.9158
Pound Sterling / Dollar $ 1.3306 $ 1.3318 -0.06% -2.58% + $ 1.3370 + $ 1.3195
Dollar / Canada 1.27751.2738 + 0.29% + 0.32% + 1.2837 + 1.2732
Australia / Dollar $ 0.7130 $ 0.7143 -0.19% -7.32% + $ 0.7170 + $ 0.7063
Euro / Switzerland 1.04111.0418 -0.07% -3.66% + 1.0444 + 1.0391
Euro / Pound Sterling 0.85200.8477 + 0.51% -4.67% + 0.8538 + 0.8474
NZ $ 0.6827 $ 0.6825 + 0.02% -4.94% + $ 0.6856 + $ 0.6773
Dollar / dollar
Dollar / Norway 9.03609.0455 -0.12% + 5.21% + 9.1260 + 9.0080
Euro / Norway 10.245810.1786 + 0.66% -2.11% + 10.3158 +10.1737
Dollar / Sweden 9.01799.0594 -0.06% + 10.02% + 9.1103 + 9.0069
Euro / Sweden 10.227010.2336 -0.06% + 1.49% + 10.3036 + 10.2077
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Yen, Swiss franc rally on global outlook risk after Hawkish Powell
Source link Yen, Swiss franc rally on global outlook risk after Hawkish Powell