Foreign Exchange Market: US Dollar And Sterling Surge

The general situation of the foreign exchange market: USD / JPY rose more than 1% on Monday (July 18th), breaking through the 116 pass and approaching the three week high position. Investors fled from the large-scale military coup led by Turkey military personnel.

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On Sunday, Turkey expanded its crackdown on supporters of military coups. The number of people arrested in the military and judicial system reached 6000. The government said that the state and the economy were under control.

This eased fears of another wave of major upheavals that aggravated Europe's economic and political problems, and attracted investors to return to higher risk currencies and sell yen, a traditional hedge currency.

Turkey's lira also reversed its previous decline and surged to 3% against the dollar, rebounding from its three month low after news of the coup last Friday.

Lira rose to 1.75% against the dollar in New York, at 2.9660.

"I think the main theme today is anxiety relief," said Douglas Borthwick, managing director of Chapdelaine Foreign Exchange.

Risk appetite shows

The authorities have successfully provided enough support to the market, so investors have not shown too much concern. "

Will Weale, a member of the MPC, said that there was no urgent need to cut interest rates, and pointed out that further interest rate cuts and the implementation of quantitative easing policy will bring problems after the Martin.

Be boosted.

GBP / USD broke through the 1.3300 pass to 1.3311, and the GBP / USD rose nearly 2% last week, showing the best weekly performance in early March.

Borthwick also pointed out that after Teresa May became prime minister last week, the market's confidence in the British political situation has improved.

The easing trend and the reversal of the British trade before the referendum in Europe have boosted the trend of the US dollar and the pound against the Japanese yen.

The pound has risen by 9% against the yen in the past eight trading days, while the US dollar has risen by 5% against the yen.

It has been reported that the Bank of Japan has begun to discuss the possibility of providing direct financing for the government to increase its expenditure, that is, the so-called "helicopter money", and the Japanese yen is also under pressure.

Day focus and weathervane:

At 16:15, Will, member of the MPC of the Bank of England Monetary Policy Committee (Martin Weale), delivered a speech entitled "the impact of Britain's withdrawal from Europe on monetary policy".

Analysis of major currencies:

Euro: the euro / dollar shock rose in the US market on Monday.

From a technical point of view, the euro / dollar chart shows the MACD green kinetic energy column, and the KDJ index is flat.

From the daily chart, the euro lacks direction.

Yen: US dollar / yen continued to rise in the US market on Monday.

From a technical point of view, the US dollar / yen daily chart MACD red kinetic energy column amplification, KDJ index upward.

From the daily chart, USD / JPY is concerned about the resistance effect near 106.80.

Australian Dollar: on Monday, the Australian dollar / dollar weakened in the US market.

From a technical point of view, the Australian dollar / dollar chart MACD red kinetic energy column contracted, KDJ index turned head down.

From the daily chart, aud / USD pays attention to 0.7680 resistance effect.