Dollar strengthens across the market due to COVID in China
2022.11.21 03:42
Dollar strengthens across the market due to COVID in China
Budrigannews.com – The US dollar rose in early European trading on Monday as concerns over the worsening COVID situation in China could hamper the global economic recovery, boosting safe-haven flows.
At 0305ET (0805GMT), the dollar overtook the greenbacks against a basket of six other currencies, rising 0.5 to 107.365%, close to its highest level since the month. 11.
Several Chinese cities recorded a record spike in new COVID-19 cases over the weekend, but Saturday recorded the first COVID-related death in nearly six months, with two more reported on Sunday. it was done.
The epidemic surge has prompted several financial centers, including the capital Beijing and economic hub Shanghai, to introduce new lockdowns, with economic activity severely impacting the world’s second largest economy and a key engine of regional growth. raised concerns about receiving
It rose from 0.6% to 7.1643 and the yuan fell to a 10-day low.
But despite these dollar gains, Goldman-Sachs believes the dollar’s strength against Asian currencies may now be short-lived.
Goldman analysts said, “The timing of the USD peak is not easy, but the USD will peak as the Fed’s terminal rate becomes clearer in 3-6 months.”
The Fed is set to release the minutes of its November meeting on Wednesday, which will provide further information on whether policymakers are currently considering slowing the tightening process.
It dropped from 0.5% to 1.0272, close to its lowest level since Nov. 14, unexpectedly dropped 4.2% in the month, compared to expectations of an increase of 0.9% after falling in the month.
On average, prices were up 34.5%, below the expected 41.5%.
That’s good news, as it rose more than 10% annually at the end of last month, up from 9.9% in September, and the European Central Bank president hinted at further gains on Friday.
It fell 0.5% to 1.1826 and rose 0.3% to 140.80, down 0.5% to 0.6637, while the risk-sensitive fell 0.5% to 0.6637.
The OECD will release its latest forecast for the global economy on Tuesday, providing a snapshot of the health of the global economy.
The Group’s latest forecasts in September already point to a worsening outlook for next year on the back of the US economy slipping into recession.
