© Reuters. U.S. debt ceiling negotiations restart tonight Fed officials will speak intensively The dollar index stays where it is
Investing.com – In the European morning session on Monday (22nd), the U.S. dollar consolidated, the U.S. debt ceiling negotiations remained uncertain, and Fed Chairman Jerome Powell’s dovish comments restrained the bulls.
As of 16:46 Beijing time (04:46 am ET), the dollar, which measures the dollar’s trade-weighted strength against six major currencies, was down 0.05% at 103.032. A high of 103.63.
The benchmark U.S. Treasury yield was at 3.671%, at 4.0425%.
Over the weekend, the situation in the US debt ceiling negotiations suddenly deteriorated, and the Republicans pulled out of the negotiations, raising concerns about the collapse of the negotiations.
However, U.S. President Joe Biden and House Republican Speaker Kevin McCarthy (Kevin McCarthy), the Republican speaker of the House of Representatives, will meet again on Monday, but there is still some time before the funds are exhausted in early June, so expect renewed disputes between the parties.
During the day, investors also need to pay attention to FOMC members and speeches. Earlier on Friday (18th), the chairman of the Federal Reserve hinted that the US central bank may pause its interest rate hike cycle in June.
Tighter credit conditions mean that “our policy rate may not need to rise as much as in other circumstances to achieve our objectives,” Powell said.
This follows some hawkish comments from other Fed officials last week that briefly boosted market expectations for a rate hike at the next meeting.
It was unchanged at 1.0808, having touched a seven-week low on Friday. ECB officials Luis de Guindos and Philip Lane are due to speak later. European Central Bank President Christine Lagarde said on Friday that interest rates need to remain high to curb inflation in the medium term.
“We still have to keep interest rates sustainably high, so now is the time when we have to really buckle up and look at where we are and get there,” Lagarde said.
The ECB’s medium-term inflation target is 2%, and it slowed only slightly to 7.3% in April from 7.5%.
It rose 0.02% to 1.2441; fell 0.14% to 0.6638; fell 0.09% to 137.86. Expectations that the United States may pause interest rate hikes supported the yen.
It rose 0.29 percent to 7.0277 and rose 0.17 percent to 7.0403. .
[This article is from Yingwei Caiqing Investing.com, to read more, please log in to cn.investing.com or download Yingwei Caiqing App]
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Compiler: Liu Chuan