Foreign exchange European market: US dollar index futures rebounded, sterling fell by more than 0.6%, and UK inflation hit a 40 year high

Yingwei financial investment Com - in the European market on Wednesday, US dollar index futures rebounded after falling for three consecutive days, while Sterling fell sharply due to soaring inflation in the UK in April.

As of 17:45 Beijing time (05:45 a.m. EDT), the US dollar index futures, which measures the trend of the US dollar against six trade weighted major currencies, rose 0.18% to 103.590, falling to 103.233 during the day, a low since May 5.

The euro / dollar fell 0.26% to 1.0520, and rose 1.1% to a high of 1.0564 yesterday, the largest one-day percentage increase since March. AUD / USD fell 0.16% to 0.7018, up 0.8% on Tuesday.

USD / JPY fell 0.15% to 129.20 as improved risk sentiment hit the safe haven yen. The onshore RMB fell 0.8% against the US dollar to 6.7428; The offshore RMB fell 0.19% to 6.7520 against the US dollar.

Recently, financial market sentiment has rebounded after data showed that retail sales in the United States increased strongly in April, indicating that U.S. consumption has withstood the test of rising prices. Ing said, "the foreign exchange market is gradually calming down after a month of turmoil.

However, when the dust settles, the Federal Reserve will still tighten interest rates to more than 3% until next year. At the same time, the Ukrainian war has impacted the commodity market, so commodity currencies may rebound now, but it is expected that the US dollar will still maintain a large part of the increase. "

 

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GBP / USD fell 0.65% to 1.2408, rising 1.4% to 1.25 yesterday, the best one-day performance since the end of 2020.

Data released on Wednesday showed that UK inflation hit a 40 year high, and the annual CPI rate reached 9% in April, increasing the pressure on the Bank of England to tighten policy.

At the last meeting, the Bank of England raised interest rates to 1%, which was the fourth consecutive interest rate hike, and soaring inflation showed that although the risk of economic recession increased, the Bank of England still had to continue to tighten monetary policy.

On the other hand, inflation in the eurozone fell slightly, but it is still near the high point. In April, the annual rate of CPI in the eurozone fell to 7.4% from 7.5% in March, lower than the 7.5% expected by the market, and the monthly rate fell to 0.6% from 2.4%, in line with market expectations.

Compared with other central banks, the European Central Bank has been making slow progress in tightening monetary policy, but more and more people expect that given the threat of inflation,

The European Central Bank will be forced to raise interest rates in the summer.

On Tuesday, European Central Bank policy maker Klaas knot hinted that if the inflation risk worsened, interest rates might be increased by 0.5 basis points. He was the first European Central Bank official to make this statement, but he still supports raising interest rates by 25 basis points in July.

Klaas knot is one of the most hawkish policymakers of the European Central Bank. His remarks show that hawks are gaining the upper hand.