Strong performance of the US dollar annual market for Fed rate hike expectations
in New York, the trend of the last trading day, the dollar remains the focus of the market, the fed and other economic policy differences, which make dollar index recorded in 2014 about 13% or, for 1997 to the strongest annual performance, major non-US currency and weakening across the commodity markets, spot gold and spot silver also weakened sharply.
market expectations for the Federal Reserve to raise interest rates again soon. United States data show quite satisfactory, but it was enough support ahead of the Fed rate hike expectations. Specific data, United States on December 27, when Zhou Ji Shen unemployment benefits adjusted 298,000, expected 290,000 people. For this data, the associated press pointed out that, although the figures were higher than expected 298,000 people, but is still nearly four months in a row is below the 300,000 mark, indicating that the pace of economic growth remained robust, companies prefer to retain and hire new employees.
in addition, the United States in December Chicago PMI 58.3 in July, the lowest since expected 60.0, the former value of 60.8. In the United States after the publication of a series of important data, the market's expectations of the Fed raising interest rates again. Chris Gaffney, EverBank Wealth Management, senior market strategist, said the dollar strengthens, traders holding large dollar holdings into the new year. Federal Reserve will raise interest rates next year, while Europe and Japan is also implementing stimulative monetary policy, this policy line of differentiation on Tuesday pushed the dollar index touched more than 8.5 year highs.
other non-us currencies, led by the euro is not so good luck. Under the pressure of a strong US dollar, the euro once again defeated. Largely because of policy differences in Europe and America, in the context of Federal Reserve rate hike heating up, euro zone is to consider how the implementation of QE. ECB's dovish remarks put pressure on the euro.
the ECB Executive Committee members Tom plate days had again expressed dovish views, he said, if the recent fall in oil prices into consideration, the inflation will be substantially lower than the current Central Bank expectations, that means most of 2015 the rate of inflation is negative. He also believed that the ECB or did not achieve the desired degree of monetary easing. Oil prices affect the operation or mean that QE is more difficult. Sovereign debt is the only market large bond, corporate bond markets have little space. Buy massive government debt, has yet to decide how to share the risks.