Rate Increase "Magic Spell" Toss US Dollar Economic Data To Save Us Dollar?

The Fed raised interest rates to postpone the expected fermentation, and the US dollar index continued to decline.

In the case of market expectations of weaker fed interest rates, the US dollar index has come out of a three week low.

In the week of Sanya, the US dollar index remained low and is now trading at 94.66.

On the other hand, when the Fed's interest rate hike is unclear and the commodity currency has come out of a rally, the ECB has not proposed a further policy of extending the volume, or will support the formation of the euro. The euro's upward target is at 1.16.

The rate hike is postponed and the gold price is expected to reach a new high in March.

The New York Mercantile Exchange's gold futures in December closed up 90 cents, or 0.1%, at $1165.40 an ounce, hitting a three month high.

The market outlook for supply and demand is uncertain, and New York's oil price decline continues to be weak.

The New York Mercantile Exchange delivered November western Dezhou crude oil futures price (WTI) down 44 cents or 0.9%, closing at $46.66 a barrel, the highest intraday climb to 48.43 U.S. dollars.

The Federal Reserve postponed interest rate hike, which is expected to continue to ferment.

Investors will focus on retail sales in the US on Wednesday.

Because the Fed emphasizes that interest rate decisions will depend on economic data, and retail sales are very important in the US economy, American retail sales data have often been "big waves" in the financial market in the past year, so they are called "terrorist data".

The median expected value of economists surveyed by the media showed that the US retail sales month rate rose from 0.2% last month to 0.3% in September, while the core retail sales in September increased by 0.2%, up 0.1% last month.

Investors will also focus on inflation data this week, including Wednesday's producer price index (PPI) and the consumer price index (CPI) on Thursday, which is a factor that the Federal Reserve should consider when making interest rate decisions.

Whereas

The mid-term inflation outlook is still uncertain, and CPI will be particularly attracted by market participants in September.

The main reason for the US Federal Reserve's interest rate unchanged in September is that the global economic weakness and the sharp financial market turmoil have raised questions about whether the US inflation could rise to 2% of the target set by the Fed as expected.

James Brad, the governor of the Saint Louis fed, delivered a speech in the US Business Economics Association (NABE), saying he believed the US monetary policy was at a "crossroads" because of the traditional

Ideas are facing challenges.

He said that the "orthodox" policy suggested that interest rates should gradually return to normal levels and provide adequate monetary easing during the pition period.

Brad believes that the unemployment rate in the US will go deeper into 4% in the future.

Fed officials finally admit that raising interest rates can not be, nor is it not.

But if interest rates are not raised, the zero interest rate environment may lead to excess financial markets.

So the Federal Reserve is in a dilemma.

JP Morgan Techs technology team pointed out that the market has not given any breakthrough signals, but in the past 2-3 trading days, the US dollar has shown signs of overall stabilization.

This may be an early sign of the long-term recovery of the US dollar, and the market may soon return to the dollar dominated market.

At present, the interest rate hike is expected to be delayed. Fortunately, today, the market will usher in heavy US economic data. Good economic data are expected to change the current market rate hike expectations and boost the US dollar's stabilization and recovery.

Concerned about US retail sales data during the day, if the data is good, it is expected to boost the US dollar index.

And tomorrow's US inflation data will be announced, and the rise in inflation will provide a strong support for interest rate hikes in the context of the continued good American job market.