Euro and British pound hit new highs in the year! Read this article to understand why the US dollar continues to plummet.
While domestic investors have been cheering for the continuous rebound of the RMB, the US dollar is actually now in its weakest phase of the year in the global forex market. Market data shows that the US dollar has fallen to its lowest level since the beginning of the year, as investors prepare for the start of the Fed's interest rate cuts.
Citigroup: A new arbitrage trade is here, the US dollar has turned into the protagonist.
Investors have significantly increased their bets on the Fed's interest rate cuts this year, exceeding 75 basis points. On top of that, with the Bank of Japan's rate hike in July, it is believed that this has disrupted the arbitrage trading model of borrowing in yen at low borrowing costs in Japan to bet on strong U.S. growth. Now hedge funds choose the U.S. dollar instead of the yen as the funded currency.
CFTC Positioning: JPY in the Green – Rabobank
JPY: Growth Better Than Expected – Commerzbank
Japan's prime ministerial election intensifies: candidates' views on monetary policy are being watched, and the direction of central bank policy is a focus.
With the intensification of Japan's new prime ministerial election, the candidates' views on monetary policy will be closely watched. This personnel change comes at a critical moment when the Japanese economy has just escaped decades of deflation.
China's Central Bank Shifts Date of Key Policy Loan Operation