The dollar has been a very good week since last September, when gold plummeted and stock markets collapsed, with U.S. bank officials bringing their first-hand demonstrations after the epidemic.
The dollar rate, which measures the greenback against the big currency, rose 0.4% on Friday, earning its one-week profit at 1.9 percent. This came after the Federal Reserve made a statement Wednesday that interest rates would rise from the lowest levels in 2023, based on their previous 2024 forecast.
Gold, which trades in dollars and often moves in exchange for US currencies, traded at $ 1,773 ounce on Friday – a decrease of about 5% since Monday’s sharp fall each week since March 2020.
“As a result of the shock of the realities of rising expectations have been met, you have seen a positive shift in the dollar,” said Keith Balmer, general manager at BMO Global Asset Management. “Most markets were Young man on the dollar before the meeting, ”he said, as traders were expecting the Fed to save money recklessly.
At Wall Street, the S&P 500 index fell by 1% as shares in banks, retail and electronics companies fell. Nasdaq Composite technical monitoring fell by 0.7 percent.
Fed officials Wednesday he grew up their forecast for US GDP growth this year up to 7% average, from 6.5% in March.
But shares in companies that benefited from strong economic growth, such as banks and factories, were falling because investors feared inflation would reduce GDP in the coming years, said Kevin Thozet, a Carmignac history adviser.
There was now, “there is a good prospect for companies that do not rely on economic growth”.
The Stoxx Europe 600 index, which peaked sharply on Wednesday, fell 1.4% while its gross domestic product fell by 2.8%. London’s FTSE fell 1.7%, pushed down by the power of electricity.
Expectations of increased interest rates ahead of the European Central Bank, which he swore keeping track of how the euro economy is moving faster than the US in Covid-19, knocked the euro on Friday. The common currency fell 0.4% against the dollar to buy $ 1.185, its decline against its US counterpart to 2% this week.
Sterling fell 0.8% against the dollar to $ 1.380, based on its weekly fall of about 2%.
U.S. government officials stepped up their efforts on Friday as traders saw signs of rising US prices as a sign of the central bank’s desire to control inflation.
Yields on the 10-year trend of the US Treasure bond, which moves against its price, were 0.04 percent low and 1.475%.
These yields have risen from about 0.9% at the beginning of the year but were managed in recent months as the currency is determined. jumping in US inflation would have been temporary. Continuous inflation undermines interest rates on loans.
“The issue of the bond market has been slowly changing,” said Tatjana Greil-Castro, head of state markets for credit bureau Muzinich. “At first we had this idea [coming out of the Covid-19 crisis] that inflation will be high forever. Then the issue was that this was on top and [inflation] it may be going away, and I think this story will change because we don’t know. ”
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