The Balance Of The Three Main Elements Of The US Dollar Is Broken.

The P US dollar index (79.8700, 0.1100, 0.14%) extended its strong performance this week on Tuesday, when the a href= "http://www.91se91.com/news/index_c.asp" > the exchange rate < /a > was 79.87.

Behind the strong rebound of the US dollar, the three key elements of the US economic recovery, the Fed's policy and exchange rate valuation have played a supporting role.

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< p > < strong > behind the strength of the US dollar, the three elements are gathered together < /strong > < /p >.

< p > the US dollar index strengthened, the US economic recovery, the three elements of the Federal Reserve Policy and exchange rate valuation played a key supporting role.

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< p > the first element is the recovery of the US economy.

A series of key US economic data released recently shows that the US economic recovery is in an orderly way on the right track.

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< p > the employment market has gradually stepped out of the extreme cold weather. In February and March, the growth of non-agricultural employment population continued to rise. In March, the non-agricultural employment population grew by 192 thousand people, though slightly lower than expected, but it has changed greatly compared with the previous one.

The big investment banks uniformly optimistic about the US labor market will accelerate growth in the second quarter.

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Less than P, and the retail sales data as the pillar industry of the US economy, consumer spending accounts for 70% of GDP in the United States, which can be regarded as another mirror of the US economy.

Data released by the US Department of Commerce on Tuesday showed that Beijing's CPI and March RPI and DCLG housing price indices will be released at 16:30 in March. The US retail sales in March increased by 1.1%, a new high in September 2012, and expected to grow by 0.8%.

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There is also inflation data in the United States. Last week, the US producer price index (PPI) rose 0.5% in March, a record high in the past year, with an expected growth of 0.1% and a fall of 0.1% in the previous year.

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At P PM, the US Department of Commerce will announce the annual rate of core consumer price index (CPI) in March, which is expected to grow by 1.6%.

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The second elements of P are from the Federal Reserve policy.

The United States economic data has been linked with good news, which greatly alleviated the Fed's concern about the recovery.

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< p > from the perspective of the Federal Reserve's monetary policy, Yellen can safely and boldly maintain the pace of QE reduction in the future market.

Although the reduction of quantitative easing does not necessarily constitute a direct benefit to the US dollar, once the Fed is expected to withdraw from the QE in the autumn as expected, the expected rise in interest rates will give the US dollar a "strong heart".

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The third important element of P is valuation advantage.

Judging from the exchange rate of major non US currencies against the US dollar, they are currently at a higher valuation level.

For example, the Australian dollar / US dollar and euro / dollar are all at the height of the current stage.

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< p > the BNP Paribas of Paris announced earlier that the quantitative model also showed that a href= "http://www.91se91.com/news/index_c.asp" > US dollar index < /a > valuations were low, especially EUR / USD, GBP / USD, aud / USD and NZD / USD.

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< p > the bank pointed out that "the US dollar index is undervalued, and the rise in US bond yields this week has led to pressure on non US currencies."

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< p > < strong > night focuses on < a href= "http://www.91se91.com/news/index_c.asp > > Yellen < /a > speech < /strong > /p >

< p > this week, the foreign exchange market will usher in the "duet" of Yellen, chairman of the Federal Reserve.

At 20:45 on Tuesday evening in Beijing, Yellen will give a speech at the 2014 financial market conference sponsored by the Atlanta fed. The market is very concerned about this.

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(P) last week's meeting of the Federal Open Market Committee (FOMC) showed that Fed officials were not in a hurry to tighten their policies immediately after the debt purchase plan ended later this year.

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< p > at 21:00 after Yellen's speech, the US Federal Reserve Chairman Lockhart (Dennis Lockhart) delivered an opening speech at the 2014 Atlanta financial market conference sponsored by the Atlanta fed.

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P Sumitomo Mitsui Banking said optimistically that "if the economic data continue to be strong, the dollar will recover all lost territory last week."

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