onlinevideopokerrealmoney| Bonda Asia: Economic data performed well, the US dollar index closed slightly higher
May 9thOnlinevideopokerrealmoneyOn Wednesday local time, the ECB's governing board and Belgian central bank president Wensch said the ECB could push ahead with interest rate cuts this year, but needed to reconsider how to forecast inflation and specify policies based on those forecasts. Among ECB policy makers (executive board + management committee), Winston is considered to be the most "hawkish".OnlinevideopokerrealmoneyHis hard-line monetary stance is on a par with Germany's central bank president Nagel and Austria's central bank governor Holzmann. For now, even the most hawkish officials admit that the ECB has almost promised to cut interest rates on June 6. But given the high inflation in the service sector and the Fed's monetary policy of "keeping interest rates high for a longer period of time", there are few signals about follow-up measures within the European Bank. In response, Mr Wensch also made a case for further action, with the hawkish official arguing that keeping the current state of austerity for too long might be at greater risk than relaxing prematurely, "although the outlook is still cloudy. But I still see the path to start cutting interest rates this year."
In addition, Susan Collins, chairman of the Boston Fed, said on Wednesday that it will take longer than previously thought to reach the 2% inflation target, which means interest rates need to stay at current levels for longer. Collins said in a speech at the Massachusetts Institute of Technology that day: "not much progress has been made in the fight against inflation in 2024, and the recent data make me believe that it will take longer than previously expected." She believes a slowdown in economic growth is necessary to keep inflation on a sustainable track of the Fed's 2 per cent target. However, Collins did not assess the follow-up process of interest rate cuts. "the policy does not have a predetermined path, it needs to make decisions based on a systematic and comprehensive assessment of a wide range of information." When it comes to monetary policy, Mr Collins said: "the recent unexpected rise in economic activity and inflation suggests that policy may need to be maintained at current levels until we have greater confidence that inflation will continue to move towards 2 per cent."
Among the data to watch today are the Bank of England's benchmark interest rate in April and the number of initial jobless claims in the US in the week ended May 4.
Dollar index
The dollar index fluctuated upwards yesterday, closing slightly higher on the daily line, and is now trading at 105OnlinevideopokerrealmoneyAround .50. In addition to the hawkish comments made by Fed officials a few days ago, and the expected cooling of the Fed's interest rate cut continues to support the exchange rate, the economic data that the United States has performed in line with market expectations over the period of time has also provided some support to the exchange rate. Focus on 106 todayOnlinevideopokerrealmoneyThe pressure near .00 is supported around 105.00 below.
EUR / USD
The euro fluctuated downwards yesterday, closing slightly lower on the daily line, and is now trading around 1.0750. In addition to the fact that the dollar index, supported by cooling expectations of Fed interest rate cuts and good economic data, is the main reason for the weakness of the euro, the ECB's interest rate cut expectations in June continued to weigh on the exchange rate. Economic data released by Germany performed well during the period, limiting the scope for the exchange rate to fall. Today, we will focus on the pressure situation near 1.0850, with the lower support around 1.0650.
Sterling / dollar
The pound fluctuated downwards yesterday, closing slightly lower on the daily line, and is now trading around 1.2490. In addition to the continued rebound in the dollar index, supported by multiple positive factors, which has weighed on the pound, the expectation of the Bank of England to cut interest rates in June has also weighed on the exchange rate. Today, we will focus on the pressure situation near 1.2600, with the lower support around 1.2400.