The Euro Turns To &Nbsp; &Nbsp; Can You Renew The "Magic" In A New Week

17 Asian exchange market early, Euro Against dollar After the high jump, the price dropped slightly, and the Australian dollar fluctuated narrowly around the 0.99 level against the US dollar. rebound Close to 83 level. Last week, the international rating agencies lowered the Greek credit rating again, and the central bank raised the deposit reserve ratio, cooling the market's once rising risk appetite. However, the euro is still a shining star last week, and the European Union's pound sterling is also a lot easier. At the same time, the trend of commodity currencies in Australia Dollar is very bleak.

The Central Bank of China announced on the 14 day that it will raise the deposit reserve ratio of banks by 50 basis points from January 20th to 19%. In the context of China's rapid economic growth, the central bank's move is aimed at controlling lending scale and curbing inflation. This exacerbated the market's concern about the possible slowdown in the pace of growth in Asian economies, and the closely linked Australian economy, which was deeply affected by the floods, welcomed the news again, and the Aussie dollar also fell against the dollar.

Fitch Rating firm 14 said that the Greek sovereign rating downgraded to "BB+" junk level, the prospect of "negative". Fitch reduced Greece's long-term foreign currency and local currency issuer default rating from "BBB-" to "BB+". Fitch said Greece's rating outlook is still negative, which means its rating may be further lowered. Analysts pointed out that Fitch's downgrading of Greece's sovereign ratings shows that Greece is still facing a serious situation and its debt problems will continue despite the severe austerity measures adopted by Greece and the assistance given by the EU and the International Monetary Fund (IMF) to Greece. The news triggered a rally in the euro market, but this week's continued buying enthusiasm finally helped the euro to keep up with the US dollar.

However, the dollar failed to rebound in the evening, which was also attributed to the fact that the dubious US economic data were hard to provide too much support for the US dollar. The US Department of Commerce announced on the 14 th that the US retail sales in December increased by 0.6% over the past sixth months. Data showed that retail sales in the US increased steadily in December, but the increase was less than expected, because the high unemployment rate inhibited consumers' holiday shopping enthusiasm.

In addition, the initial consumer confidence index of University of Michigan dropped to 72.7 in early January, far below the expected 76, the current index dropped to 79.8, and the one year inflation rate is expected to rise to 3.3%. However, in December, the industrial output value increased by 0.8%, the annual ratio increased by 5.9%, and the operating rate increased to 76%, which was stronger than expected, implying that the manufacturing industry in the United States remained strong.

Technically speaking, the euro and the US dollar have risen sharply after the previous period, and the exchange rate is facing important technical resistance and 1.3445/95's selling is suppressed. The short term may slow down. But as long as the market can hold 1.3280 short-term support positions, the euro will continue to challenge 1.3445/95 and even break through. If so, the euro will open room for further growth, followed by resistance at 1.36 levels.

Because the US financial market is closed today, the exchange rate market is quiet, which limits the volatility of the exchange rate. And today's European finance ministers' meeting, the European bond auction continues to be the focus of the 17 day's foreign exchange market. In addition, Chinese President Hu Jintao's visit to the United States and China's data are also worthy of attention.