Dollar continues to rise / price growth for the sixth consecutive day

Following the successive fall of digital currencies and the inability of gold to break the important resistance level of $ 2,000, the attractiveness of the foreign exchange market for traders has increased to the point that the daily trading volume in the world foreign exchange markets is estimated at $ 6.5 trillion. Becomes. (By comparison, the total market value of digital currencies is less than $ 1.4 trillion.) Among the various currencies, secure currencies are still very popular with investors who value and identify them as a means of raising capital.

Confidence in the dollar has risen following remarks by the US president. Expressing confidence in the central bank’s ability to contain inflation, Joe Biden told central bank governor Jerome Powell that he respects central bank independence. Jerome Powell was appointed during Donald Trump’s presidency, and it is unclear whether Biden will agree to extend his presidency. Powell has previously opposed many of Trump’s policies, and this has led to deep divisions between the two.

The incidence of coronary heart disease has risen again in most countries of the world, and the number of victims, especially in East Asian countries, has reached an unprecedented level, and in the United States, the number of infected people has exceeded 25,000 per day. As the number of people with coronary heart disease increases and new types of mutants emerge, the World Health Organization has issued a statement warning countries to be extra careful in removing quarantine regulations. The Corona virus delta variant is now the dominant type in Europe and the United States.

The US Secretary of the Treasury, referring to the persistence of inflation in the country, said he was concerned about the excessive pressure that this inflation will put on low-income households and people who are facing a decline in income due to the corona. However, Janet Yellen expressed confidence that inflation would return to target, saying she did not think the US and world economies were in danger of a financial crisis like the ones in 2008 and 2009. According to Yellen, it will take several months for inflation to return to normal.

Sino-US relations are once again strained. US lawmakers are now seeking to ban any Chinese companies from doing business with Xinjiang after the US Commerce Department announced sanctions against a number of Chinese companies for their links to the Chinese military and human rights abuses. On the other hand, the Chinese Foreign Ministry praised Russia’s move to reduce the dollar share of the National Wealth Fund’s foreign exchange reserves to zero and said it would increase its cooperation with Russia in reducing its dependence on the dollar.

Keeping the inflow of foreign capital to China at a good level will help the yuan maintain its good position against the dollar. According to data released by the Ministry of Commerce of China, foreign direct investment in China in the first six months of this year reached 607.84 billion yuan, an increase of 33.9% over the same period last year. The largest increase in foreign investment during this period is related to countries A. Three. It was 50.7 percent and the European Union was 10.3 percent.

But as the gap between vaccination trends in developed and developing countries widens, the demand for safe assets has increased again. World Health Organization officials have called on leaders in developed countries to allocate surplus vaccines to those in need. The request comes after some countries raised the possibility of injecting a third dose, but many reputable institutions have stated that people who have received two doses of the vaccine do not need a third dose.

Monetary policymakers continue to inject liquidity and credit into financial markets, especially the foreign exchange market, to ensure a strong exit from the Corona recession. The central banks of Japan, the United States and Europe are continuing their bond-buying program, and in China the central bank has announced a $ 150 billion re-injection into the market, which some experts say is to allay the concerns of financial and capital market participants. International investors have been slowing the country’s economic growth.

In its latest move to stabilize the foreign exchange market, China’s central bank has decided to reduce its banks’ legal reserve ratio. The decision comes after China’s inflation rate hit a positive 1.1 percent in the six months to June. This inflation rate, which was 0.2 percent lower than the previous month’s inflation, was most affected by the increase in inflation in the transport sector, which increased to a positive 5.8 percent. This is the lowest inflation recorded in China in the last three months.

The bad news for the US economy, especially at an alarming rate, is that the number of people applying for unemployment benefits by the first week of July increased by 2,000 from the previous week to 373,000, the highest number ever recorded. It is considered the last three weeks. According to the US Department of Labor, the largest increase in demand for benefits was in Louisiana. So far, 155 million Americans have received the corona vaccine, but the labor market is far from returning to its peak.

So far, more than 192 million 82 thousand 846 cases of corona have been reported, among which 4 million 117 thousand 590 people have lost their lives. Among the various countries, the highest casualties were in the United States with 625,046, Brazil with 542,877, India with 414,657, Mexico with 236,469 and Peru with 195,243. .

“We’ve been seeing the positive impact of vaccination advances on the foreign exchange market for a long time,” said Jane Foley, Robobank’s chief foreign exchange strategist. The extent to which vaccines respond to new mutations is a matter of great concern to traders. In general, if traders conclude that it is still to eliminate corona risk, they will turn to safer assets that benefit the dollar.

Dollar Index

The dollar index, which measures its parity against a basket of global currencies, closed at 0.92 percent at 92.972 today, up 0.14 percent from the previous day.

The exchange rate of each Swiss franc was announced as $ 1.085. (The above rates are calculated based on the closing hours of New York foreign exchange markets.)

European currencies

In the most recent trading session, the pound traded down 0.28% at $ 1.363. The euro fell 0.13 percent to $ 1.178 after staying in the 1.17 channel.

Asian currencies

In Asian currency markets, the dollar rose 0.33 percent to 109.849 yen. Against the Australian counterpart, each US dollar was traded for $ 1.363. The exchange rate of the dollar was also equal to 6.484 Chinese yuan.



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