Ekonomické zprávy

Asian session review: The US dollar shows negative dynamics

TimeCountryEventPeriodPrevious valueForecastActual
06:00JapanPrelim Machine Tool Orders, y/y January1.0% -9.7%
07:00GermanyCPI, m/mJanuary-0.8%0.8%1%
07:00GermanyCPI, y/y January8.6%8.9%8.7%

During today's Asian trading, the US dollar declined moderately against major currencies, while investors are still evaluating yesterday's statements by Federal Reserve System (Fed) policymakers.

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 0.19%, to 103.21.

On Wednesday, a number of high-ranking Fed officials made speeches, and in general they signaled their intention to continue the fight against inflation by tightening monetary policy.

Thus, the president of the Federal Reserve Bank of New York, John Williams, said that the Central Bank will probably have to adhere to a restrictive monetary policy for several years in order to achieve a return of inflation to the target level of 2%.

Meanwhile, Lisa Cook, a member of the Fed's Board of Governors, noted that the strong January job growth, combined with a slowdown in wage growth, increased hopes for a "soft landing" as the Fed continues to raise interest rates, but the labor market is moving forward. Cook said the Fed is determined to bring inflation back to the 2% target with further interest rate increases.

In turn, Fed Board member Christopher Waller made it clear that the Fed still has a lot to do to bring inflation under control. "Although we have already made progress in curbing inflation, I want to make it very clear that the work is not done yet," Waller said. "It's going to be a long fight, and we're going to have to hold the high rates for longer than many expect at the moment."

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