The Dollar Is In Hot Pursuit And The Euro Is Dismal.

After a day's rest, the US dollar index continued to start its rally, continuing its splendor, rising 1% in the day to nearly 98.60 year high of 98.60, and the euro again selling, losing the Mai City, breaking the 1.07 barrier in the day. In other markets, spot gold fell 0.4% to a three month low. Brent crude fell 4%, and US crude oil fell 3%, all of which were affected by a strong dollar.

IFR Markets's global strategist Divyang Shah said: "the euro is rapidly depreciating and is expected to fall to parity with the US dollar in the year, possibly at the end of the second quarter."

However, Shaun Osborne, chief foreign exchange analyst at Dao Ming securities, believes that the euro has fallen sharply or raised the Federal Reserve's interest rate raising concerns. The analyst pointed out that the technical resistance level should be around us $1.07 when the euro reached a 12 year low against the US dollar, but the euro is still expected to fall to parity with the US dollar for the first time in December 2002. If the euro continues to fall in the next few months, the Fed will worry about the orderly and violent rise of the US dollar, which will raise doubts about whether the Federal Reserve can raise interest rates in this environment.

Marshall Gittler, global head of foreign exchange strategy at IronFX, wrote in the research report that "the big moves of German bonds show that the easing measures of the European Central Bank have not yet been completely absorbed by the bond market, that is to say, the quantitative easing in the euro area has not been completely digested by the foreign exchange market."

The European Central Bank continued to implement the plan to buy bonds. Cole, the European Central Bank, said the Central Bank of the European Central Bank and the euro zone member bought 3 billion 200 million euros of public debt on Monday. Minna Kuusisto, a market analyst at Finland's central bank, said the bank bought its sovereign debt in the two tier market within the ECB's quantitative easing program. The Central Bank of Finland will buy about 15 billion euro bonds in September 2016, including a "large" number of Finland treasury bonds.

The euro fell below the 1.07 threshold against the dollar, and worries from Greece continued to pressure the euro. The market now focuses on negotiations between Greece and the eurozone, and negotiations are temporarily deadlocked.

According to foreign media quoted Fuchs, a senior member of the German Democratic base, Greece has not fulfilled its obligations in debt. The consequences of Greece's return to Europe can be controlled. We are not afraid of Greece going back to Europe, but we want Greece to stay in the euro area. Dicer Blom, the chairman of the euro group, said that if Greece did not reform, the market would lose confidence in it. If Greece does not work hard, it will not get financial assistance.

The Greek government has tit for tat and said it would not allow international creditors to return to Athens. Gavriil Sakellarides, a Greek government spokesman, pointed out to private Athens television that the three carriages have already belonged to the past tense. This is a well-known fact, and the same is true for the three carriages delegations who are going to visit Athens and hold talks with ministers.

Desai Bloom, the chairman of the euro group, said last week that Greece's recent economic reform plan was not perfect enough, and said it was unlikely that the country would receive assistance this week. Unless further financial assistance is available, the Greek government will run out of cash later this month. He also said on Monday that the Greek government needs to stop wasting time and speed up reforms related negotiations.

Osman Sattar, a credit analyst at standard & Poor's, wrote in the report, "we believe that the direct impact of Greece's withdrawal from the eurozone, or the continued uncertainty of the situation, on foreign banks will be limited, because they are all relatively small in the Greek banking sector, or in the public and private sectors of Greece. Direct risk Open, after the restructuring of Greek government debt in 2012, these foreign banks have substantially reduced the size of loans in Greece.

Within days, the eurozone data showed that Italy's monthly output of industrial output fell by 0.7% after the 1 quarter of the month, with an expected growth of 0.2% and a 0.4% increase in the previous value.

The US dollar index rose 1%, a record high of nearly twelve years. The euro's rival currency, the US dollar, is quite strong. The dollar's exchange rate soared on Tuesday, and more investors took advantage of the arbitrage opportunities between the US, Europe and Japan in terms of monetary policy and economic disagreements. Before the 17 to 18 meeting of the US Federal Reserve in March, market sentiment also became tense. Now the market is widely expected that the Fed will delete the word "patience" waiting for interest rates in the wording of the forward-looking guidelines.

"It seems that investors are buying dollars before the Federal Open Market Committee policy meeting," said Kenji Yoshii, a foreign exchange strategist at Mizuho Securities.

Fed officials Fisher also issued hawkish remarks on the day. He said the Fed should increase interest rates as soon as possible and the Fed should raise interest rates before achieving full employment, so as not to trigger a recession. He believes that by the summer of 2015, the United States will have stable employment and output growth.

Lew, US Treasury Secretary, said the US economy should be strong enough to fly higher.

Economic data have little effect on the US dollar trend. The US wholesale inventories rose 0.3% in January, the biggest decline since March 2009, the expected decrease of 0.1%, and the increase in the previous value of 0.1%. In the US, JOLTs vacancies in January were 4 million 998 thousand, with an expected value of 5 million 50 thousand, and the former value was revised from 5 million 28 thousand to 4 million 877 thousand.

Spot gold prices fell 0.4% to three month lows due to the Fed's annual interest rate rise. The US dollar index climbed to the highest level in September 2003, making gold more expensive for investors holding other currencies.

It is almost certain that the Fed will raise interest rates within the year. Investors' judgement of this prospect will continue to push the US dollar to a high level for many years. The strong dollar makes additional pressure on commodity futures contracts priced in US dollars, including gold.

Naeem Aslam, AvaTrade's chief market analyst, said, "the price of gold will remain under pressure because of the Federal Reserve The expectation of raising interest rates may soon be heating up. "

Although the market has also made judgement on the prospect of raising interest rates. US stock market The main index is down, but this does not effectively support gold's risk appetite for investment.

Brien Lundin, editor of gold newsletter, said: "market sentiment is not good for gold. From the perspective of counter trading, this may make gold and gold related stocks an excellent opportunity.

Fawad Razaqzada, a technology analyst at Forex.com, said that looking ahead for some time, the lack of global inflation pressure and the strength of the US dollar exchange rate mean that any upward trend in gold prices is only temporary.

Crude oil fell sharply, Brent crude fell 4%, US crude oil fell 3%, and was hit by a strong dollar. For Brent crude, which fell more than US oil, traders pointed out that market participants had made a big loss in the recent profits of Brent crude oil.

The US dollar index rose again to a high level for several years on Tuesday. Crude oil prices weakened sharply in anticipation of the US Federal Reserve's interest rate hike as a result of the US annual interest rate rise.

However, Fawad Razaqzada, a technology analyst at Forex.com, points out that the decline in oil prices can not be entirely attributed to the US dollar. He wrote in the report that the drop in oil prices is due to the fact that the output is too high, which can be corroborated by the recent surge in US crude oil inventories. He said that before we saw a large and sustained decline in crude oil inventories, one of the lowest oil prices will surely continue to decline.

Compared with Brent crude, the US crude oil inventories increased slightly last week. The market participants bet that the US crude and the Brent crude oil will further narrow down, which also made the US crude oil decline smaller than that of Cushing crude oil. Cushing, Oklahoma, is the delivery point of the US crude oil futures contract.

Sahlman, Saudi Arabia's new king, said oil and gas exploration would continue despite the fall in oil prices, promising to build a strong diversified economy.

The latest US API crude oil inventory data showed that in March 7th, the US API crude oil inventories decreased by 404 thousand barrels in the week, and the former value increased by 290 million barrels. After the release of data, US crude oil futures prices narrowed slightly, while Brent crude prices remained generally stable.