US Inflation Is Turning To Global Re Inflation. The US Dollar Is Facing Huge Obstacles.

The euro is the second largest reserve currency after the US dollar.

When the euro zone was founded in 1999, some experts predicted that the euro would replace the US dollar in 2015.

However, the divergence between European countries has become increasingly evident since then.

Unless the euro zone becomes a fiscal alliance to share risks, this proposition is unlikely to be established, otherwise investors will be reluctant to trust the euro. They are worried that the eurozone will face disintegration at any time.

Suitable for global

The yen ranked third in the list of currencies.

During the period of rapid development from 1970s to 1980s, Japanese leaders chose to adopt a protective strategy which did not promote the internationalization of the yen.

At present, in view of its long-term economic downturn and population ageing, it is hard to accept this challenge in a very short time.

The Federal Reserve will start to shrink this year, and this is also the most concerned problem for the market. Most officials insist that the Federal Reserve will increase interest rates at least once this year. Among the big hawks, the big hawks say they will increase interest rates by 2 or 3 times in the year, but there is no lack of pigeon officials' view that they will increase interest rates by more than 1 times a year.

China has made great progress in promoting RMB internationalization.

The amount of currency swap and the successful inclusion of the RMB into the SDR basket of the IMF indicate that China has been preparing for the renminbi as a reserve currency.

However, the share of the renminbi in the foreign exchange market is still very low, which accounted for only 1.7% of international payments in January 2017.

Some of the things investors take for granted may no longer be relied on and future.

Or become less secure.

Nevertheless, through the above analysis, we find that all of the above currencies have not yet prepared for this heavy responsibility, even in the wrong direction.

The US Federal Reserve, the world's most influential central bank, has attracted much attention from the market. Especially since the Federal Reserve announced its dovish increase in March, Fed officials' speeches have repeatedly triggered market shocks. According to incomplete statistics, over the past two weeks, a total of 13 Fed officials have delivered speeches, including many votes committee members this year.

After the Fed officials' hawkish speech and US data support, the US dollar index ushered in a rebound of the wavelet, reaching the highest 100.6 average line and stabilizing it above the 100.5 average line. When the market was optimistic about the rise of the US dollar index, the Fed officials faced their faces again and completed the "Hawk Dove" style conversion in less than 24 hours.

The New York Fed chairman Dudley (William Dudley) said on Friday in the US East that there are two more times in 2017.

The view seems correct, but there is no need for haste, given that the economy is not overheating.

The US dollar index remains low in the day, following the decline in the yield of 10 - year treasury bonds, which is close to 2.40% below the daily low.

The dollar closed for the first time in a month on Friday, but it still recorded a quarterly decline of more than 3%, which disappointed the US dollar at the beginning of the year that the US dollar would expand its earnings.

And on Thursday (March 30th), Dudley also said that in financial markets, it is important not to overreact to short-term changes. It is expected that interest rates will be gradually increased in the year.

The handover style was unprepared for the market, and the economic data released by Dudley before the speech were very good. The data released overnight showed that the US consumer expenditure figures were flat, indicating that despite the fact that consumer confidence has reached the highest level in more than 16 years, Americans are still reluctant to increase consumer spending and the mood of the dollar has been suppressed, and the US dollar's rise has been blocked.

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