Hello everyone, as we all know the market action discounts everything :)
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The dollar fell on Monday after the People's Bank of China (PBOC) announced a surprise benchmark decrease. Investors are also anticipating the Federal Reserve of the United States' January policy announcement and the timing of interest rate hikes.
The US Dollar Index, which measures the greenback against a basket of other currencies, fell 0.01 percent to 95.153.
Resistance points for the DXY :
1) 95.23
2) 95.26
3) 95.30
Support points for the DXY :
1) 95.16
2) 95.12
3) 95.09
The USD/JPY pair rose 0.20 % to 114.43 following the Bank of Japan's policy announcement on Tuesday.
The AUD/USD pair rose 0.07 % to 0.7211, while the NZD/USD pair rose 0.08 % to 0.6803.
The GBP/USD exchange rate rose 0.04 percent to 1.3678.
The USD/CNY pair fell 0.08 percent to 6.3478, following Chinese data issued earlier in the day that showed GDP increased 4% year on year and 1.6 percent quarter on quarter in the fourth quarter of 2021.
In December, industrial production increased by 4.3 percent year on year, and retail sales increased by 1.7 percent year on year, according to the figures, while the jobless rate remained at 5.1 percent.
After the PBOC cut borrowing charges for medium-term loans for the first time since April 2020, Chinese bonds soared while the currency sank. Following the decision, ten-year government bond futures surged to their highest level since June 2020, while the yuan opened onshore trade modestly lower at 6.3555 per dollar.
Meanwhile, the dollar's movement followed a rise in US yields on Friday. Even when the pace for gains began to ebb, the hawkish interest rate offered support for the US currency.
Investors are also anticipating the Fed's next policy announcement, which is scheduled for Jan. 26. J.P. Morgan CEO Jamie Dimon stated that interest rates might be raised "six or seven times" in 2022, while hedge fund investor Bill Ackman stated over the weekend that he expected an initial 50 basis point boost.
Although U.S. markets are closed on Monday for a holiday, benchmark 10-year futures were sold to a two-year low, and Fed funds futures were also dumped.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The dollar fell on Monday after the People's Bank of China (PBOC) announced a surprise benchmark decrease. Investors are also anticipating the Federal Reserve of the United States' January policy announcement and the timing of interest rate hikes.
The US Dollar Index, which measures the greenback against a basket of other currencies, fell 0.01 percent to 95.153.
Resistance points for the DXY :
1) 95.23
2) 95.26
3) 95.30
Support points for the DXY :
1) 95.16
2) 95.12
3) 95.09
The USD/JPY pair rose 0.20 % to 114.43 following the Bank of Japan's policy announcement on Tuesday.
The AUD/USD pair rose 0.07 % to 0.7211, while the NZD/USD pair rose 0.08 % to 0.6803.
The GBP/USD exchange rate rose 0.04 percent to 1.3678.
The USD/CNY pair fell 0.08 percent to 6.3478, following Chinese data issued earlier in the day that showed GDP increased 4% year on year and 1.6 percent quarter on quarter in the fourth quarter of 2021.
In December, industrial production increased by 4.3 percent year on year, and retail sales increased by 1.7 percent year on year, according to the figures, while the jobless rate remained at 5.1 percent.
After the PBOC cut borrowing charges for medium-term loans for the first time since April 2020, Chinese bonds soared while the currency sank. Following the decision, ten-year government bond futures surged to their highest level since June 2020, while the yuan opened onshore trade modestly lower at 6.3555 per dollar.
Meanwhile, the dollar's movement followed a rise in US yields on Friday. Even when the pace for gains began to ebb, the hawkish interest rate offered support for the US currency.
Investors are also anticipating the Fed's next policy announcement, which is scheduled for Jan. 26. J.P. Morgan CEO Jamie Dimon stated that interest rates might be raised "six or seven times" in 2022, while hedge fund investor Bill Ackman stated over the weekend that he expected an initial 50 basis point boost.
Although U.S. markets are closed on Monday for a holiday, benchmark 10-year futures were sold to a two-year low, and Fed funds futures were also dumped.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.