European session on Thursday (October 27), the surge fell back to 109.67, down 0.04%.
While a 75 basis point rate rise in early November is all but certain, global markets “rallied” as expectations of a Fed “turn to dove” grew.
On October 26, yields fell again, with the 10-year Treasury yield approaching the 4% mark, the index falling below the 110 mark, and US gold futures continuing to rise by about 1%.
Lyu Haomin, a researcher at the Bank of China Research Institute, told the 21st Century Business Herald that the rising risk of a recession has led to rising market expectations of a slowdown.
Since March 2022, the Federal Reserve has raised interest rates by 300 basis points for five consecutive times and by 75 basis points for three consecutive times, leading to a sharp rise in dollar financing costs and a significant deterioration in the operating conditions of enterprises and other micro entities.
The US dollar index (DXY) hit a fresh monthly high of 109.56 in Tokyo amid a marked improvement in risk appetite among market participants.
After giving up key support at 110.00, the DXY has shifted into a negative trajectory and is expected to weaken further going forward.
