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The dollar is recovering after some growth and reaches its lowest level in a week

The dollar after the growth reaches a minimum level in a week Dwain Ross ★★★★★

As of 9:15 a.m., the U.S. dollar index, which follows the dollar against a basket of six other currencies, was down 0.2% to 107.045 after hitting its low of 106.88 on Monday, but is also far from the high of 109.29 last week, a level that was below 109.29. has not been achieved since September 2002.

The dollar was gradually moving away from its multi-year high as expectations of a massive tightening of the Fed's monetary policy at the end of July were revised downward, especially after two of the most optimistic FOMC members - James Bullard and Chris Waller - said they could not count on a dollar appreciation. their baseline scenario was still a 75 basis point rate hike.

"We doubt that by the time of the FOMC meeting on July 27, the markets will seriously consider increasing the basis points by 100 points; firstly, because the Committee has entered its ban period, and therefore there will be no participants until next week, and then at least until next year. because this week it is expected that the data flow in the US will be mainly of the second order," ING (AS:INGA) analysts said in a note.

The EUR/USD pair rose slightly by 0.3% to 1.0169 ahead of the European Central Bank meeting on Thursday, at which policy makers are expected to begin a cycle of raising interest rates in Europe, increasing by 25 basis points.

Nevertheless, the surge in inflation makes some operators think about a half-pound increase, especially if the final data on the consumer price index in the eurozone, which is due to be published later at the meeting, will be revised above the annual growth of 8.6% observed in June.

On the other hand, political uncertainty remains in Italy, where respected Prime Minister Mario Draghi is due to address lawmakers on Wednesday, where he will declare his intention to give his fragile coalition another chance or leave the government.

In addition, Russia is expected to resume gas supplies from Western Europe on Thursday via the Nord Stream gas pipeline after the scheduled closure for maintenance. The euro could come under pressure if Moscow decides to extend the agreement for political reasons while the war in Ukraine is raging.

"All this is not very good news for the euro," ING added. "The explosion of Italian bond spreads may well increase pressure on the common currency this week and, in particular, on EUR/CHF), although any changes in the dispute between the EU and Russia over gas supplies and fluctuations in sentiment on global risk they can still determine the majority." movements in euros/ US dollars".

AUD/USD rose 0.6% to 0.6854 after Reserve Bank of Australia Deputy Governor Michelle Bullock hinted at an upcoming interest rate hike, saying Australian households are generally well positioned to absorb rising borrowing costs.

The central bank raised rates by 50 basis points to 1.35% in early July, which was the third increase in as many months.

The USD/JPY pair fell 0.3% to 137.75, and the USD/CNY pair rose 0.1% to 6.7477, with the Bank of Japan due to meet on Thursday and the central bank of China on Wednesday.

GBP/USD rose 0.2% to 1.1978, recovering from a fall to 1.1761 at the end of last week for the first time since March 2020, when the United Kingdom faced stiff competition to replace ousted Prime Minister Boris Johnson.

Labor market data released earlier on Tuesday showed that British workers joined the labor market at the fastest pace since the start of the pandemic, as the cost-of-living crisis attracted more people to employment.

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