- The dollar accelerated the rise in the group of the G10 after the declarations of central bankers.
- GDP data for the first quarter revised downwards.
- Wall Street without clear direction, confirms Tuesday’s fall.
The dollar gained momentum after the start of the American session and with the forum of the European Central Bank in Portugal in the background. The greenback hit a one-day high against most G10 currencies. The Dollar Index rose to 104.94, the highest in a week.
On Wall Street, the Dow Jone rises 0.45% and the Nasdaq 0.10%. They are swinging between gains and losses, having suffered a sharp drop on Tuesday. Treasury yields are falling but this is not slowing down the dollar. The 10-year rate is at 3.13% and the 30-year rate at 3.25%, the lowest since June 24.
The climate of caution in the markets seems to predominate given the growing concerns about the global economic outlook. The context of the advance of the dollar comes from the declarations in Portugal in the annual forum of the ECB of Powell and Lagarde.
The Federal Reserve chairman reaffirmed his commitment to lower inflation and said the shape of the yield curve is not among the main concerns. On the dollar, he said that the Fed does not have a responsibility for a particular level. He said that the biggest risk is failing to restore price stability.
The EUR/USD trades below 1.0500, at least in a week. GBP/USD is closing in on 1.2100, at its lowest in nearly two weeks. USD/JPY hit new highs since 1998 by breaking above 136.70. Both AUD/USD and NZD/USD are also at daily lows, albeit with a more moderate pullback.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
