Ekonomické zprávy

Asian session review: the US dollar shows negative dynamics

TimeCountryEventPeriodPrevious valueForecastActual
00:30AustraliaBuilding Permits, m/mDecember-8.8%1%18.5%
07:00GermanyTrade Balance (non s.a.), blnDecember11.2 9.7
08:00SwitzerlandSECO Consumer ClimateQuarter I-46.6 -30

During today's Asian trading, the US dollar declined moderately against major currencies, following yesterday's collapse caused by the results of the Federal Reserve meeting.

The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.24% to 100.97. Yesterday the index fell by 0.86%.

The Fed, as expected, raised the interest rate by 25 basis points, to 4.5-4.75%. At the previous meeting, the rate was raised by 50 bps. Fed Chairman Jerome Powell at a press conference following the meeting for the first time admitted that "the disinflationary process has begun." He also suggested that the rate would not exceed 5%, and repeated that the Central Bank could achieve a slowdown in inflation without causing significant damage to the economy. Powell noted that he does not expect the Fed to cut rates in 2023 if economic indicators are in line with forecasts. However, the tone of his statements gave market participants hope that the rate hike cycle could soon end.

Today, the focus of investors' attention will be on the results of the meetings of the Bank of England and the ECB. Both central banks are expected to raise their interest rates by 50 basis points.

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