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On Wednesday (10), dovish remarks from Federal Reserve Chairman Bao echoed the urgency of Biden’s US $ 1.9 trillion stimulus plan. Economic data showed that US inflation was still subdued, US bond yields were lower, and the US dollar.After falling, the US dollar continued its downward trend and fell to a minimum of about 2 weeks.
On Wednesday, the US dollar index (DXY), which tracks the US dollar against a basket of major currencies, fell 0.1% to 90,377, closing for the third consecutive trading day.
Federal Reserve (Fed) Chairman Ball told the Economic Club of New York on Wednesday that loose monetary policy will continue for a period of time. The Fed continues to drive the US economy through low interest rates and large asset purchases.
Bauer mentioned that the US labor market is still a long way from full recovery and called on lawmakers and the private sector to support workers.
US Senator Ron Wyden responded that Ball’s comments added a depressing assessment of the unemployment situation in America and reiterated that the US government desperately needs to provide as robust a bailout plan as possible.
Economic data
- The monthly rate of increase of the underlying CPI in the United States reported 0% in January, 0.2% lower than expected, and the previous value was 0.1%.
- The monthly increase in the CPI in the United States reported 1.4% in January, lower than the expected 1.5%, and the previous value was 1.4%.
Amo Sahota, chief executive of Klarity FX, a currency advisory firm in San Francisco, said that the rise in the US dollar has undoubtedly lost its momentum and the weak trend may continue. The US dollar was affected today by the CPI data. The market expects the inflation rate to recover, and it appears to be benign at present, and deflationary transactions do not yet exist.
Bank of America recently raised its expectations for the exchange rate of the US dollar against the euro. Based on “a large-scale stimulus is about to be introduced, the US economy is growing faster than Europe, the sale of euros against the US dollar, and the price of risk assets falls ”, the US dollar is estimated to be around for the full year of 2021. The dollar is expected to rise to 1.15 against the euro before the end of the year.
Bank of America said the global vaccination rate is relatively slow, meaning it may take several years to completely get rid of the new corona crisis. The long road to recovery will support the dollar in the short term.
Before the deadline (at 10am on Thursday, Taipei time), the performance of the US dollar against major currencies:
After US electric car maker Tesla announced that it had invested $ 1.5 billion in bitcoins, it promoted the rise of cryptocurrencies. On Wednesday, it was reported that Twitter was considering buying bitcoins or supporting the payment of bitcoins. General Motors stated that it is about investing in bitcoins. Thanks Bumin.
US Treasury Secretary Yellen said the Treasury Department will crack down on the abuse of cryptocurrencies to promote innovation. On Wednesday, Bitcoin fell from yesterday’s high of 47,697.
Before the deadline, performance of the virtual currency:
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