Market participants are currently starting to get priced in with the potential for a 75 bps hike in the Fed's interest rate. This can be seen from the yield on 10-year government bonds which fell to 7.35% yesterday. Previously, the yield had perched above 7.4%. The 10-year US Treasury yield also fell to 2.76%. The yield of US debt securities has fallen quite a lot from last week's position, which had touched 3%.
At the FOMC last night, the fed said that a rate hike was a move to fight inflation. Higher interest rates work to slow down inflation by cooling off demand.
Another discussion is about "recession fears" are an exaggeration. The Fed reassures investors that don't worry about media coverage of a recession, they are really working to avoid a recession in America.
Instantly investors holding confidently put their money into US assets. Circulation of money is slightly reduced, but the value of the currency tends to strengthen. We can see investors' confidence as seen in the wall street chart recorded a significant bullish in 2 hours, while the USD tends to weaken in the short-term.
But this optimism will definitely strengthening of the USD in the long-term.
We can monitor the strengthening of the USD in early August from the labor data through the release of ISM Manufacturing PMI, ADP Employment Change, and Non Farm Employment Change/NFP.
At the FOMC last night, the fed said that a rate hike was a move to fight inflation. Higher interest rates work to slow down inflation by cooling off demand.
Another discussion is about "recession fears" are an exaggeration. The Fed reassures investors that don't worry about media coverage of a recession, they are really working to avoid a recession in America.
Instantly investors holding confidently put their money into US assets. Circulation of money is slightly reduced, but the value of the currency tends to strengthen. We can see investors' confidence as seen in the wall street chart recorded a significant bullish in 2 hours, while the USD tends to weaken in the short-term.
But this optimism will definitely strengthening of the USD in the long-term.
We can monitor the strengthening of the USD in early August from the labor data through the release of ISM Manufacturing PMI, ADP Employment Change, and Non Farm Employment Change/NFP.
