The RMB Will Go Up Smoothly, Otherwise The Appreciation Space Will Be Limited.

The renminbi rose against the US dollar on Wednesday (April 20th), and the overnight dollar index rose sharply to a 4 month high.

The US dollar / RMB inquiry system was reported at 6.4635 noon and 6.4722 on Tuesday. The central parity of US dollar / RMB central bank was 6.4579, and Tuesday's middle price was 6.47. The spot turnover of RMB against the US dollar was US $9 billion 374 million, which was US $10 billion 200 million on Tuesday.

In the overseas non deliverable Forex foreign exchange (NDF) market, the latest US dollar / Renminbi variety was 6.6420 at the latest and 6.6358 at the end of Tuesday. Off shore of Hongkong USD / RMB The latest spot report is at 6.4725, and the last trading day is 6.4682.

The exchange rate of RMB against the US dollar updated at 11:00 today is 6.4631.

Reuters calculated the RMB CFETS index continued to drop to 97.30 on Wednesday, a record low, down 2.7% from the end of 2014.

On the international exchange market, commodity currencies such as Australian dollar and Canadian dollar fell from the recent high level on Wednesday. The price of crude oil has stagnated after the strike of oil workers in Kuwait.

Traders said that the risk appetite rebounded against the US dollar, and the renminbi went up smoothly, but it was still unchanged. Fluctuation interval Unless the dollar continues to be weak, the yuan will continue. Appreciation space Relatively limited.

Traders also pointed out that the recent bilateral stability of the RMB against the US dollar and the RMB exchange rate index (CFETS) referring to a basket of currencies will continue to decline, which will help improve China's terms of trade. If the US dollar is to become stronger again in the future, it can also take the idea that the bilateral exchange rate is basically stable and the CFETS index is strong enough to provide room for exchange rate adjustment.

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Sigmar Gabriel, Germany's deputy prime minister, said the European Central Bank has reached the limit of its stimulus measures and called on the government to increase spending.

He said on Wednesday: "the European Central Bank has become the agent of the economic sector, but the central bank's responsibilities are not so. The only tool is printing money. When the EU's fiscal investment and growth momentum are insufficient, the ECB provides a lot of liquidity. "

Gabriel said that although the European Central Bank's policy has caused many German deposits to shrink due to low interest rates, Draghi should not be regarded as a bad person. He thinks the ECB only responds to years of austerity in Europe's low interest rate environment.

In fact, the Germans have been dissatisfied with the ultra loose policy of the European Central Bank for a long time. Wall Street knowledge has mentioned that the European central bank governor Delagi said last month that the idea of "helicopter money" is a very interesting concept. His statement caused a wave of waves, which strongly opposed Germany's long-term dissatisfaction with the low interest rate easing policy of the European Central Bank.

Delagi said last month that the idea of "helicopter throwing money" is a very interesting concept. Although Delagi and his colleagues have not discussed this strategy as a policy option, they still sparked protests in Germany. Germany's attack on the European Central Bank seems to be more upbeat.

German Der Spiegel, quoted by the German finance ministry as an anonymous source, said that if the European Central Bank appealed to the extreme monetary easing policy of "helicopter type" money spreading to the eurozone, the German government would consider asking the court to distinguish clearly the responsibilities and powers of the European Central Bank at the legal level.

However, Constancio and executive director Praet of the European Central Bank both said earlier this month that "helicopter money spying" to stimulate spending and inflation is not within the scope of consideration, so as to quell the German opposition. But the effect seems to be bad. A large number of German conservative politicians have criticized the ECB's stance this month.