Dollar Gains on Rising Yields Sterling Slips as Retail Sales Slump

Dollar Gains on Rising Yields Sterling Slips as Retail Sales Slump

Dollar Gains on Rising Yields Sterling Slips as Retail Sales Slump 2022

Dollar Gains on Rising Yields Sterling Slips as Retail Sales Slump

The US dollar strengthened in early European trade on Friday, as Treasury yields hit new highs, while sterling weakened as retail sales slumped in September, while political chaos continued in the UK.

At 03:55 ET (07:55 GMT), the dollar index, which tracks the greenback against a basket of six other currencies, rose 0.1% to 112.980.

The US Federal Reserve is widely expected to continue its aggressive interest rate hikes at its next meeting in early November, with Fed policymakers continuing to press the need for a tighter monetary policy to curb rising inflation.

Federal Reserve Bank of Philadelphia President Patrick Harker said Thursday that the central bank is not done with raising its short-term rate target, "Given the lack of our apparently disappointing progress on reducing inflation, I expect that we will be above 4% by the end of the year, compared to the current federal funds rate target of between 3% and 3.25%.

This flamboyant talk made the U.S. That helped Treasury yields climb to new multi-year peaks, and pushed USD/JPY to a 32-year high above 150, which is currently up 0.2% at 150.41.

Markets remained on high alert for any signs of interference by Japanese authorities, although last month's move to buy the yen at the 145 level for the first time since 1998 has had little effect.

"We cannot tolerate excessive moves by speculators. We will respond appropriately to currency market movements," Japanese Finance Minister Shunichi Suzuki said on Friday.

GBP/USD fell 0.5% to 1.1190 after UK retail sales fell for the second straight month in September, down 1.4% in the month and 6.9% in the year, as consumers tackle runaway inflation as consumers move the country forward. Restricted spending for Closer to recession.

The pound had already given back early gains, falling to its lowest level in a week, after news that British Prime Minister Liz Truss had resigned after only six chaotic weeks in office.

The EUR/USD fell 0.1% to 0.9770 after EU leaders again failed to come to an agreement to cap gas prices, in the early hours of Friday morning to examine options for capping costs. decided to.

The sector is driving inflation from higher energy prices, possibly prompting the European Central Bank to act more forcefully, increasing the potential for recession across the continent.

AUD/USD fell 0.1% to 0.6270, NZD/USD fell 0.3% to 0.5664, weighed by retrace risk sentiment, while USD/CNY rose 0.4% to 7.2472, trading near 14-year high, Chinese economy The delay in key third-quarter GDP figures follows rising uncertainty over the US.

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