News Tech: The dollar hit a six-day high in early trading on Tuesday after U.S. Treasury yields surged, but the yen stabilized and the currency traded against the dollar after the Bank of Japan said it would stick to ultra-accommodative monetary policy. fell against The US Federal Reserve Board will meet next week. A rate hike is expected in March for the first time since the coronavirus pandemic began, with investors pricing in a total of four hikes in 2022.
German investor sentiment hits a six-month high in January as COVID-19 rates are expected to drop by early summer, Europe’s largest economy grows again, according to a ZEW survey was found to accelerate. As oil prices hit their seven-year high and global stock markets plummeted, Germany’s benchmark 10-year bond yield approached 0%, but not above 0%. There was not. “We expect the reconsideration of U.S. interest rates, and this recent rise in yields, to reflect not only an initial acceleration in the pace of rate hikes but also an increase in terminal implied rates.
U.S. Treasury yields surged, with 2-year yields (which track short-term interest rate expectations) surpassing 1% for the first time since February 2020 as investors brace for the Fed’s potential to be more hawkish than expected. Exceeded. US 10-year yields also hit a two-year high. The dollar rose against a basket of currencies, hitting a six-day high of 95.454 during Asian trading. At 95.385 by 1232 GMT, he was up 0.2% for the day. EURUSD fell 0.1% to $1.1388.
Investor Kit Jukes said in a note to clients that a global economic recovery would dominate the second half of the year. Yen weaker Yen weakened after the Bank of Japan announced it would maintain ultra-accommodative monetary policy despite international financial institutions moving out of crisis mode. As of 1237 GMT, the dollar was flat against the yen at 114.6, with the pair rising to 115.06 overnight. “We continue to expect the BOJ to maintain its current policy framework at least until Kuroda’s term ends in April next year,” MUFG FX analyst Lee Hardman said in a note to clients.