Foreign Exchange Weekly Review: Euro Revaluation Against USD During Dollar Exchange Call

China is expected to realize RMB convertibility this year, which is intended to boost the RMB basket of the special drawing rights of the RMB to join the IMF, and the net inflow of capital brought by RMB convertibility will further boost the price of Hong Kong stock and A shares this year.

According to the latest data, US industrial production in March was the largest monthly decline in two and a half years. In April, the New York fed manufacturing index was negative for the first time since December last year. In March, housing starts increased less than expected, and the number of unemployed people increased unexpectedly at the beginning of the week.

Ye Yaoting, senior foreign currency analyst at Bank of communications, predicted that these data suggest that US economic activity is still weak after the slowdown in the first quarter, which is damaging the confidence of the US dollar.

The weakness of US data makes the timing of the Fed raise interest rates uncertain.

On Wednesday, the Fed's economic Brown Book said that the US economy continued to expand, but the rise in the US dollar undermines manufacturing activity.

At the same time, most of the Fed described the economy as "moderate" or "small".

Fed officials have different views on raising interest rates, highlighting the difficulty of building consensus on the point of raising interest rates.

Lockhart, President of the Atlanta Federal Reserve, said that "gloomy" data showed that we could wait for the first time and then raise interest rates.

However, Meister, President of the Cleveland fed, said that despite the weak economic performance in the first quarter, her expectations were under pressure.

It may still be "relatively early" and warn that it will take too long to raise interest rates to make financial markets unstable.

The three consecutive trading days were down sharply after the sell-off of long profits.

Wang Zhe, a foreign exchange analyst at Bank of China, suggested that the US dollar should be considered in the long term, while the short-term support index below the US dollar index is in the 96 line.

During the dollar callback period,

Once again, it rose to the top of 1.07, opening a big rebound, and the other non US currencies also gained gains.

This week, the European Central Bank kept interest rates unchanged at record lows, which was in line with widespread market expectations.

Delagi, President of the European Central Bank, said he will firmly implement the QE debt purchase plan and continue to provide support to Greece.

Delagi also mentioned that the euro zone exports are benefiting from the depreciation of the euro. Eurobank will provide emergency liquidity assistance to Greece's solvency banks, and the euro's low exchange rate will gradually benefit inflation.

Analysts suggest that investors should not overtake the euro, and the early bears can continue to hold positions. If the euro is profitable, it will be profitable.

The yuan also rose to the US dollar. On the 17 day, the central parity of RMB against the US dollar was 6.1267, the highest since the beginning of February.

Since March, the RMB has lost its momentum against the US dollar and has entered the equilibrium range.

Li Jing, managing director of JP Morgan, told reporters that under the influence of multiple factors such as China's economic pformation and upgrading and RMB's accession to the SDR, the RMB exchange rate will not depreciate significantly during the year, and will remain stable at the current exchange rate level.