August 15, 2022

Dubai Week

Complete Dubai News World

The occasional move of the dollar and euro before the speech of Lagarde and Powell

As the US dollar rose in early European trade on Wednesday, there were persistent fears of a global recession as traders returned to this safe haven.

02:55 AM ET (06:55 GMT), the dollar index, measuring the greenback against the basket of six other currencies, rose 0.1% to 104.410 after rising about 0.5% overnight.

The dollar rose on Tuesday after data showed that US consumer confidence fell to a 16-month low in June.

Christine Lagarde, President of the European Central Bank, said the euro had weakened as the central bank’s annual forum did not provide new insights on European interest rates or the structure of the new anti-retail apparatus.

The EURUSD fell 0.3% to 1.0490, the most populous state in the North Rhine-Westphalia since then, retreating to a level not seen for nearly two weeks, with consumer prices falling 0.1% in June. %

The European Central Bank is expected to follow its global counterparts in raising interest rates in July for the first time in a decade, but fears it will try to contain rising inflation but lead to further significant borrowing costs. Indebted eurozone countries.

Morgan Stanley (NYSE: MS) now expects the eurozone to fall into a mild recession in the fourth quarter of this year, driven by increased investment and contracted for two quarters before resuming growth in the second quarter of next year.

President Christine Lagarde will appear before a panel on Wednesday with Federal Reserve Chairman Jerome Powell and Bank of England Governor Andrew Bailey to discuss trade between controlling inflation and ensuring a smooth downturn in the world economy. Closely examined.

Analysts at ING said in a statement: “Lagarde is expected to shed some light on how seriously the ECB is considering a 50bp rate hike in September in light of recent performance studies.”

The US dollar / Chinese currency pair traded very smoothly at 6.7074, gaining some demand for the yuan after China announced its easing of segregation requirements for incoming travelers, which is considered the country’s biggest loose to date of the “zero covid”. Strategy.

GBP / USD was up 1.2187, USDJPY was down 0.1% at 136.04, while risk sensitivity USD / AUD was down 0.4% at 0.6882.

See also  UAE stocks initially fell due to pressure from key stocks