The euro rose slightly against the US dollar and then fluctuated and fell

Huitong Network3month2Daily News - Thursday(3month2day)In the Asian market, the euro rose slightly against the US dollar and then fluctuated and fell. It has now slightly rebounded and is trading on1.0532frontline.

according toFX678Observation, Mitsubishi Tokyo UFJ(BTMU)The market is focused on the Federal Reserve's interest rate hike process as financial markets gradually improve their performance3Valuation of monthly interest rate hike probability, Saturday Beijing time(3month4day)02:00Federal Reserve Chairman Yellen's speech supports3There is a high probability of a monthly interest rate hike. The specific viewpoints are as follows.

BTMU: Federal Reserve3The probability of delaying interest rate hikes on a monthly basis is relatively low, and the euro is expected to be at parity

Why is Yellen attempting to reverse the market's valuation of expectations for a Fed rate hike at this stage? The recent factor that has caused the market to reverse the valuation of expectations for a Fed rate hike is that San Francisco Fed Chairman Williams stated3The monthly interest rate hike is being seriously considered. St. Louis Fed Chairman Brad also stated that it is time to reduce the balance sheet.

Market vs. Federal Reserve3The change in pricing based on the probability of monthly interest rate hikes is highly dramatic. The current federal funds rate in the United States3monthfuturesDisplay, Federal Reserve3The probability of monthly interest rate hikes jumps to70%Three days ago, only23%。

Due to the current market belief that the Federal Reserve3The probability of monthly interest rate hikes skyrocketing, and the probability of delaying interest rate hikes this month is relatively low, which will continue the upward trend of the US dollar in the coming days.

Huitong Network pointed out that the bank still expects the euro to fall below parity against the US dollar, as the two-year swap spread supports US interest rates to reach new highs, and the euro is expected to fall below parity against the US dollar1.0400。
Federal Reservehttp://news.fx678.com/news/keywords/fed.shtml