As the dollar fell, investors cut the PBOC benchmark on Investing.com

Author: Gina Lee

Investing.com – The dollar fell on Monday morning in Asia,. Investors are also looking forward to the US Federal Reserve’s January policy decision and interest rate hike calendar.

The greenback followed by a basket of other currencies fell 0.01% to 95.153 at 22:58 ET (3:58 GMT).

The pair rose 0.20% to 114.43 on Tuesday with its policy decision.

The pair rose 0.07% to 0.7211 and the pair rose 0.08% to 0.6803.

The pair fell 0.08% to 6.3478, and data released by China on the same day show that GDP grew by 4% and 1.6% in the fourth quarter of 2021, respectively. The figure also rose by 4.3% year-on-year and by 1.7%. In December it was 5.1% year-on-year.

The pair rose 0.04% to 1.3678.

China’s bonds rose, while the yuan fell as the PBOC cut its medium-term lending costs for the first time since April 2020. Ten-year government bond futures rose to a high since June 2020 after the move, and the yuan began a dry trade. slightly softer at $ 6.3555 per dollar.

Meanwhile, the dollar move continues its Friday jump along with U.S. gains. The hawkish interest rate provided support for the US currency despite the decline in the profit momentum.

“Friday’s move suggests that the driving force behind the dollar’s interest rate is not dead and buried. It may not necessarily return to push new dollar heights, but we have had a twist in every Fed meeting since June 2021,” said the National Bank of Australia (OTC). 🙂 Head of Currency Strategy Ray Attrill.

Investors are also looking forward to what will be announced on January 26th. JP Morgan CEO Jamie Dimon said there could be a “six or seven” interest rate hike in 2022, while hedge fund manager Bill Ackman tweeted over the weekend. that he expects an initial 50-point increase.

U.S. markets are closed for the holidays on Monday, but the benchmark 10-year futures were sold at two-year lows, and Fed fund futures also fell.

In addition, the one-month sterling rally is over, but some investors believe it could recover profits if inflation data pushes the Bank of England (BOE) to raise interest rates.

“Currently, interest rate markets have the potential to raise the price by 80% for the BOE to raise the rate by 25 bp on February 3,” said Commonwealth Bank of Australia (OTC 🙂 strategist Joe Capurso.

“Faster inflation rates could bring prices closer to 100%.”