News and Information

  Sept. 11 - The euro remains under pressure above the 1.0700 zone on fears of a recession in the euro zone. Optimistic U.S. economic data supports claims that U.S. interest rates are higher and longer. Economists expect the European Central Bank to keep interest rates unchanged at its September meeting. U.S. CPI and ECB interest rate decisions in August will be closely watched. The euro has struggled to rise against the dollar after Friday's shock. The pair rallied slightly during the Asian session on Monday...

  On September 13, the US CPI in August will be released. The CICC major asset inflation sub-model forecasts that the nominal and core CPI growth rates will rise significantly from the previous month's values, and there is even a risk that they will be higher than market expectations. Chart: Split and forecast the month-on-month growth rate of US core inflation. Source: Haver, CICC Research Department Chart: Split and forecast the month-on-month growth rate of US nominal inflation. Source: Haver, CICC Research Department Model forecasts the core CPI...

  Markets have become vulnerable again as Wall Street's expectations for a recession have dimmed, fearing any sign that the U.S. economy is overheating. Forecasts for a recession in financial assets ranging from high-yield credit to equities have dropped to their lowest level since April 2022, according to JPMorgan & Co. It's a big reversal from the "doomsday sentiment" of the past year, when recession was seen as a fact of DingTalk on the board. That means markets are increasingly influenced by economic news...

  Hedge funds are flooding back into the oil market at their most bullish pace in more than a year after being hit by the oil slump in the first half of 2023. Fund managers bet at the start of the year that Russian production cuts and a recovery in Asian demand would push crude back to the highs it reached in 2022. But those hopes were quickly dashed by recession fears, turmoil in the US banking sector and strong inflows of Russian money. Hardest hit was the "god of crude trading"...

  The People's Bank of China authorized the China Foreign Exchange Trading Center to announce that on September 11, 2023, the central parity rate of the RMB exchange rate in the interbank foreign exchange market was 7.2148 yuan for 1 US dollar, 7.8140 yuan for 1 euro, 4.9710 yuan for 100 yen, 0.92016 yuan for 1 Hong Kong dollar, 9.1054 yuan for 1 pound, 4.6748 yuan for 1 Australian dollar, and 4.6748 yuan for 1 New Zealand dollar.

  Japanese Finance Minister Shunichi Suzuki said on Friday that he will properly deal with the excessive volatility of the foreign exchange market and does not rule out any options. After Shunichi Suzuki's comments, the dollar/yen fell sharply, and dragged the dollar index down rapidly, reaching a minimum of 104.85. In the Asian market on Friday (September 8), the dollar index suddenly jumped in the short term, reaching a minimum of 104.85, a decline of about 0.2%, giving up most of the overnight gains. Well-known financial website FX...

  Recently, the United Automobile Workers (UAW) and the three major U.S. automakers - General Motors, Ford Motor and Stellantis Group - are in contract negotiations, demanding large pay raises and other rights for workers. The contracts between UAW union employees and the three major North American automakers are re-signed every four years. The current labor contract will be held at 11:59 p.m. on September 14...

  The Chicago Board Options Exchange Volatility Index (CBOE VIX), known as the "fear index", has never topped 35 this year, but some traders are betting that it will soar to 180 in the coming months. One trader spent $30,000 on Thursday making a bold bet that he would be rewarded if Wall Street's so-called "fear index" rose more than 12-fold next year before it expires on February 14. It is worth mentioning that since 1993...

  The People's Bank of China authorized the China Foreign Exchange Trading Center to announce that on September 8, 2023, the central parity rate of the RMB exchange rate in the interbank foreign exchange market was 7.2150 yuan for 1 US dollar, 7.8069 yuan for 1 euro, 4.9753 yuan for 100 yen, 0.92064 yuan for 1 Hong Kong dollar, 9.1040 yuan for 1 pound, 4.6635 yuan for 1 Australian dollar, and 4.6635 yuan for 1 New Zealand dollar.

  ATFX official website - Bets on the Federal Reserve to raise interest rates again also increased slightly after Wednesday's data showed activity in the U.S. services sector rose to a six-month high. In response, David Kelly, chief global strategist at JPMorgan Asset Management, warned that if the Federal Reserve raises interest rates again when inflation is already slowing, it will put the U.S. consumer in a "dangerous" position. Kelly said in a TV interview on Wednesday: "...

  BlackRock Global Fund (BGF), a product of BlackRock, the world's largest asset management company, announced in a shareholder letter on September 5 that it will close its sub-fund, China Flexible Equity Fund (BGF China Flexible Equity Fund), on November 7. Some market views believe that BlackRock has decided to withdraw from the Chinese market due to regulatory pressure, and the closure of small China funds can reduce regulatory risks. For...

  The Federal Reserve released the latest edition of its Beige Book of the economy through Aug. 28 in the early hours of Thursday morning Beijing time. The report is released two weeks before each FOMC meeting. The latest Beige Book shows that the U.S. economy and job market grew more slowly in July and August, with many businesses expecting a general slowdown in wage growth in the near term. Contacts in most regions said economic growth was moderate. Almost all regions said businesses "reconfirmed their previously unrealized wage increases in the short term...

  The dollar's recent strong performance has puzzled some sceptics, while some hedge funds believe the rally is not over yet. K2 Asset Management said the dollar will continue to rise as U.S. interest rates remain high. AVM Capital expects rising U.S. Treasury yields to push the dollar to continue strengthening. "It seems too risky to short the dollar," said George Boubouras, head of research at K2. He believes the dollar will move against the Australian dollar and...

  The People's Bank of China authorized the China Foreign Exchange Trading Center to announce that on September 7, 2023, the central parity rate of the RMB exchange rate in the interbank foreign exchange market was 7.1986 yuan for 1 US dollar, 7.8120 yuan for 1 euro, 4.9501 yuan for 100 yen, 0.91788 yuan for 1 Hong Kong dollar, 9.1070 yuan for 1 pound, 4.6587 yuan for 1 Australian dollar, and 4.6587 yuan for 1 New Zealand dollar.

  On the evening of September 5, the US dollar index rose sharply, rising to 104.84 during the session, setting a new intraday high since May 31; non-US currencies have plunged, including the Australian dollar against the US dollar exchange rate fell by more than 1.4% during the session, the euro against the US dollar fell by more than 0.7%, the British pound against the US dollar fell by 0.56%, and the Japanese yen against the US dollar fell by 0.7%, setting a new low since November 7 last year.