New York, April 25th. The dollar"s perfect bullish storm from Thursday of expectations of less Fed accommodation, rising stock prices and rising bond yields has gone into reverse to some extent to end the week, in part as very recent spec shorts cover ahead of the week and long-term bulls pick up what they see as bargains, but also on some sober reassessing of risks.
Today"s Reuters/Univ of Mich Sentiment index dip to 62.6 vs the 63.2 preliminary reading for April served as a reminder that the US economy is under duress, but the survey also showed inflation expectations rising 4.8% from 4.3% for the next year, while the 5-yr forecast went to 3.2% from 2.9%. Rising inflation expectations are being reinforced by expanding press coverage of isolated food rice spikes in some sectors of the US and abroad. The Fed will not take kindly to rising inflation expectations and may have to fight inflation regardless of the housing-led recession. A case can also be made that rising inflation is feeding global political instability and can best be attacked by tighter monetary policy from the Fed.
EUR/USD has rallied from the 1.5556 overnight low to 1.5665 last, but faces heavier resistance in the 1.5700 vicinity, although stops are seen on a clear breakout beyond there. -
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[Emphasis added]
欧元兑美元:周末前美元反弹失去动力
周四美元的强劲反弹在周末失去动力,美国4月密歇根大学消费者信心指数跌落,但报告细节显示通胀预期走高。欧元/美元从1.5556低点上涨到1.5665,但在1.5700阻力强劲,上方有止损。
Today"s Reuters/Univ of Mich Sentiment index dip to 62.6 vs the 63.2 preliminary reading for April served as a reminder that the US economy is under duress, but the survey also showed inflation expectations rising 4.8% from 4.3% for the next year, while the 5-yr forecast went to 3.2% from 2.9%. Rising inflation expectations are being reinforced by expanding press coverage of isolated food rice spikes in some sectors of the US and abroad. The Fed will not take kindly to rising inflation expectations and may have to fight inflation regardless of the housing-led recession. A case can also be made that rising inflation is feeding global political instability and can best be attacked by tighter monetary policy from the Fed.
EUR/USD has rallied from the 1.5556 overnight low to 1.5665 last, but faces heavier resistance in the 1.5700 vicinity, although stops are seen on a clear breakout beyond there. -
[email protected]
[Emphasis added]
欧元兑美元:周末前美元反弹失去动力
周四美元的强劲反弹在周末失去动力,美国4月密歇根大学消费者信心指数跌落,但报告细节显示通胀预期走高。欧元/美元从1.5556低点上涨到1.5665,但在1.5700阻力强劲,上方有止损。