It seems that you didn't notice the continuous decline of the US dollar index tonight?
The decline of the US dollar index is partly due to the slight decline of economic data tonight. The S&P manufacturing index fell below the 50 boom-bust line. The data showed that the US manufacturing industry did not usher in growth but instead showed industry stagnation. This data led to a worsening of US economic expectations.
At the same time, Bill Dudley, who previously maintained a hawkish taste in the face of US interest rates, turned dovish, emphasizing that interest rate cuts are imminent, and even this month is the most appropriate. At the same time, he pointed out that the continued high interest rates and the weakness of the job market have led to a clear recession risk in the US economy.
Bill Dudley, a Bloomberg Opinion columnist, served as President of the Federal Reserve Bank of New York from 2009 to 2018. He is Chairman of the Bretton Woods Committee and has been a non-executive director of Swiss bank UBS since 2019.
Bill Dudley has a high weight in the economic field, and he has turned directly from a hardline hawk to a dove, and at the same time pointed out the crisis of the economy. This has led to pessimism among investors tonight in addition to the decline of US stocks, as well as pessimism about the US economy, which has led to a continuous decline in the US dollar index.
Especially this week is still the "silence" period for Fed officials, which has led to the inability to save the decline of the US dollar index through language.
At the same time, the 10-year US Treasury yield fell by 0.62%, and the price of 10-year US Treasury bonds rose.
The only good news at present is that the decline of Russell 2000 is gradually narrowing, and there may be a rebound in the second half of the night.
