News and Information

  The People's Bank of China authorized the China Foreign Exchange Trading Center to announce that on September 26, 2023, the central parity rate of the RMB exchange rate in the interbank foreign exchange market was 1 US dollar to RMB 7.1727, 1 euro to RMB 7.6281, 100 yen to RMB 4.8560, 1 Hong Kong dollar to RMB 0.91767, 1 pound to RMB 8.8184, 1 Australian dollar to RMB 4.6330, 1 New Zealand dollar to RMB...

  With the U.S. debt exceeding 33 trillion, interest payments will soon become the government's largest spending item, posing a threat to economic growth, and Wall Street is starting to sound the alarm... U.S. debt reached an all-time high of $33 trillion last week due to ballooning federal deficits and massive issuance of national debt. To be sure, rising debt itself is not an automatic cause for concern, as it is not common for countries to fully repay large debts. Instead, more meaningful trade-offs...

  Despite the continued depreciation of the yen, yen bears are still hesitant to act recklessly due to fears that the threat of Japanese intervention will come true, and the dollar is in its narrowest monthly trading range against the yen in a year and a half. Although the dollar hit a 10-month high against the yen earlier on Monday, the gap between the dollar and the yen's September high and low is only 2.8%. In July, the Bank of Japan unexpectedly adjusted its YCC policy, when the range almost doubled from September,...

  Ellen Zentner, chief US economist at Morgan Stanley, said of the Fed's move to tamp down inflation by raising interest rates: "I strongly think they've stopped there, but they've left room for it." On the What Goes Up podcast, Zentner discussed the Fed's decision last week to leave the federal funds base rate unchanged and her expectations for future monetary policy and the US economy. She...

  What determines the price of gold? For most of the past decade, the answer was simple: the price of money. The lower the interest rate, the higher the price of gold, and vice versa. Gold is the quintessential "anti-dollar currency" and is the first choice for those who do not trust fiat currencies. Therefore, in a world where real interest rates are low and the dollar is cheap, the price of gold will naturally rise. Or, when interest rates rise, gold without yield naturally loses its appeal, causing prices to plummet...

  The People's Bank of China authorized the China Foreign Exchange Trading Center to announce that on September 25, 2023, the central parity rate of the RMB exchange rate in the interbank foreign exchange market will be 7.1727 yuan for 1 US dollar, 7.6776 yuan for 1 euro, 4.8729 yuan for 100 yen, 0.91755 yuan for 1 Hong Kong dollar, 8.8285 yuan for 1 pound, 4.6515 yuan for 1 Australian dollar, and 4.6515 yuan for 1 New Zealand dollar.

  Ahead of Thursday's Federal Reserve FOMC statement, summary of economic forecasts, and Powell's press conference, spot gold prices have been rallying back to near two-month highs. But the hawkish tilt of the summary of economic forecasts, as well as Powell's speech, sent the dollar soaring and the precious metal plummeting. Spot gold has been pushed below its 200-day moving average. However, Goldman Sachs notes: Beneath the surface, "we are starting to see customers re-engage with gold ETFs...

  A bad week on Wall Street turned dismal on Thursday after a sustained surge in U.S. Treasury yields dented demand for risky assets. In the end, U.S. stocks suffered their biggest drop in six months as investors readjusted to a world where interest rates are at levels not seen in a generation. The S & P 500 tumbled 1.6 percent and the Nasdaq 100 fell nearly 2 percent. Both indexes were on track for their worst quarters in a year. The 10-year Treasury yield...

  While the Federal Reserve has ended raising interest rates, the pain for bond investors is not over, said Mr. Gross, the former chief investment officer of the so-called "old debt king" (PIMCO). In his investment outlook report published on Thursday, Mr. Gross said the bond market was heading for an unprecedented third year of losses due to high inflation, widening deficits and government spending equivalent to "throwing money from a helicopter". The "old debt king" in 201...

  The Federal Reserve left interest rates unchanged on Wednesday (September 20), but hinted that it could raise rates again if further steps are needed to curb inflation. The Federal Reserve left interest rates unchanged on Wednesday (September 20), but hinted that officials could raise rates again if further steps are needed to curb inflation. The Fed kept its base rate in the 5.25% -5.5% range, but kept its interest rate forecast for this year at 5.5-5%, which means there will be more this year...

  Congress has less than two weeks to finalise the federal government's budget before the start of the fiscal year on October 1, an issue that is likely to dominate headlines and political conversations. Investors should not overreact, and this shutdown crisis will eventually pass. "We have a strong economy, and creating something that might cause the momentum to wane is something that we don't have at the moment," US Treasury Secretary Janet Yellen told CNBC on Monday about a potential government shutdown.

  Today's Federal Reserve FOMC post-meeting statement is identical to the July statement. What is really shocking is that the outlook for 2024 is more hawkish. In fact, as foreign media pointed out, comparing the 2024 forecast with previous forecasts shows a clear shift in hawkishness. Here are some comments from Wall Street analysts, strategists, and traders on the Fed statement and Powell's press conference. Mohamed El - Chief Economic Adviser at Allianz...

  The People's Bank of China authorized the China Foreign Exchange Trading Center to announce that on September 21, 2023, the central parity rate of the RMB exchange rate in the interbank foreign exchange market was 7.1730 yuan for 1 US dollar, 7.6863 yuan for 1 euro, 4.8722 yuan for 100 yen, 0.91693 yuan for 1 Hong Kong dollar, 8.9043 yuan for 1 pound, 4.6561 yuan for 1 Australian dollar, and 4.6561 yuan for 1 New Zealand dollar.

  The Federal Reserve's September interest rate decision will be ushered in the early morning of Beijing time tomorrow (Thursday). The market generally expects the Federal Reserve to stay put, but is concerned about whether it will release new signals on future interest rate policy. After raising interest rates by 25 basis points in July, the target range for the US federal funds rate is already at 5.25% -5.5%, the highest in 22 years. The latest inflation data in the United States showed that the CPI rose by 3.7% year-on-year in August, slightly higher than the market expectation of 3.6%.

  The OECD expects the global economy to slow as higher interest rates weigh on economic activity and Asia's recovery disappoints. According to the latest OECD forecast, global growth will slow to 2.7% by 2024 (previously forecast 2.9%), following growth of 3% this year (previously forecast 2.7%). This will be the weakest annual growth since the global financial crisis, with the exception of 2020, which is affected by the COVID-19 pandemic. The OECD...