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Powell's comments hit the market.USD hits new highs, JPY falls
USD soared to a three-month high on Thursday. The dollar index rose 0.53% in late trading to 91.561. It was as high as 91.663 during the session, the highest since December 1 last year. The euro fell 0.73% against the dollar to 1.1973 US dollars, the lowest since February 5.
The Swiss franc fell to 0.9297 Swiss francs against the US dollar, the lowest since July 23 last year. The yen touched 107.93 yen against the dollar, the weakest since July 1.
As global economic growth improves, high-risk currencies, including the Australian dollar, are expected to outperform. But as the stock market fell, the Australian dollar gave up earlier gains on Thursday. The Australian dollar fell 0.57% in late trading to $0.7730 and is currently holding below the three-year high of $0.8007 touched last week.
Bitcoin fell 5.36% to $47,691. Ether fell 3.21% to $1,518.
Powell: Yield rate trend is not "out of order"
Federal Reserve Chairman Powell’s speech was not as good as some traders expected to express anxiety about the recent rise in U.S. bond yields, which exceeded 1.5%, supporting U.S. dollar demand. The yen, which is sensitive to yields, continued to fall, and major currencies also weakened.
Powell said that the rate of increase in yields was “very large and caught my attention”, but he did not think it was a “disorder” trend, nor did he think it would push up long-term interest rates to the point where the Fed would have to intervene more vigorously in the market (such as increasing The scale of debt purchases).
As the US government is about to launch new fiscal stimulus, it has contributed to the expected psychology of rising inflation, and the mass vaccination has also contributed to people's optimism about the recovery. The February non-agricultural employment report to be released on Friday is the next important economic indicator.
Mazen Issa, a foreign exchange strategist at TD Securities, said: "The United States is in a leading position in terms of economic growth, fiscal dominance, and vaccination." Issa said: "With the rise in U.S. yields, traditional financing currencies such as the euro, yen and Swiss franc , The performance is particularly lagging. Therefore, it can be seen that the euro has weakened recently, and the Japanese yen and Swiss franc have also continued their recent weakness."
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