News and Information

  The People's Bank of China authorized the China Foreign Exchange Trading Center to announce that on September 4, 2023, the central parity rate of the RMB exchange rate in the interbank foreign exchange market was 7.1786 yuan for 1 US dollar, 7.8144 yuan for 1 euro, 4.9782 yuan for 100 yen, 0.91493 yuan for 1 Hong Kong dollar, 9.1344 yuan for 1 pound, 4.6882 yuan for 1 Australian dollar, and 4.6882 yuan for 1 New Zealand dollar.

  As a buzzword on the 2023 financial marekt, "de-dollarization" seems to have a bit of a bad name because it didn't stop the dollar from continuing its sharp rally in August. The question is whether the momentum can be sustained. The ICE Dollar Index (a measure of the dollar against six major currencies including the euro and the yen) fell to a 15-month low in mid-July before rebounding about 4%, according to FactSet. It was up around 1.7% in August. That was enough for the index to recover...

  The U.S. non-farm payrolls report for August is scheduled to be released at 20:30 Beijing time on Friday. The market expects the report to show a slowdown in the pace of job growth, while the unemployment rate is at a historic low. The slowdown in job growth will ease pressure on the Federal Reserve to raise interest rates further. Economists surveyed by The Wall Street Journal estimated that 170,000 non-farm payrolls were added in August. The seasonally adjusted increase would be the smallest monthly increase since January 2021. Economists warned...

  U.S. commercial crude inventories have fallen by 34 million barrels since mid-July, giving a sense that the market is tightening and driving a recovery in spot prices and calendar spreads. Commercial crude inventories have fallen in five of the last six weeks, according to data released this week by the U.S. Energy Administration (EIA). Commercial crude accounts for all of the reduction in total inventories over the same period, with 19 million barrels reduced since July 14, production up 12 million barrels and strategic inventories up 3 million barrels....

  Hedge funds "may" have increased their positions in highly leveraged US Treasury basis trades, posing a risk to financial stability, according to a study published by the Federal Reserve. Basis trades use the spread between the price of Treasury futures contracts and deliverable notes and bonds. Even the Fed can only guess the size of the basis trade. However, researchers Daniel Barth, R. Jay Kahn and Ro...

  The People's Bank of China authorized the China Foreign Exchange Trading Center to announce that on September 1, 2023, the central parity rate of the RMB exchange rate in the interbank foreign exchange market was 7.1788 yuan for 1 US dollar, 7.8815 yuan for 1 euro, 5.0112 yuan for 100 yen, 0.91551 yuan for 1 Hong Kong dollar, 9.2125 yuan for 1 pound, 4.7224 yuan for 1 Australian dollar, and 4.7224 yuan for 1 New Zealand dollar.

  On August 31st, the U.S. economy grew at a slower pace in the second quarter than the initial value, and other data reports showed that employment is also slowing. The labor market data for August is significant because Federal Reserve Chairperson Powell said at the Jackson Hole Symposium that inflation has become more sensitive to the labor market response. In early Asian trading on Thursday (August 31st), spot gold continued its rebound trend, and the price of gold has now exceeded $1,945 per ounce. As of press time, spot gold reported...

  ATFX FX - After a series of recent economic data in the United States, former Boston Federal Reserve President Rosengren said that if the job market and economic growth continue to slow, the Federal Reserve can stop raising interest rates... The former Boston Federal Reserve President said on Wednesday that if the job market and economic growth continue to slow at the current slow pace, the Federal Reserve may end its rate hike cycle. CME Group's FedWatch tool shows that financial marekts generally expect the Federal Reserve to...

  ATFX economists believe that the second-quarter GDP revision means that the economy still looks good, and reduces the risk of overheating and rising inflation... The US economy grew less than previously expected in the second quarter, which is a good sign for the Federal Reserve. As it tries to cool demand to curb price increases, data released by the US Commerce Department on Wednesday showed that the annual rate of GDP in the second quarter was revised down to 2.1% from the previous 2.4%. Compared with the initial value,...

  The US economy grew at a slower pace than previously thought in the second quarter, a good sign for the Federal Reserve as it tries to cool demand to rein in rising prices. Data released by the Commerce Department on Wednesday showed that GDP in the second quarter was revised down to an annualised rate of 2.1 per cent from 2.4 per cent previously. The final figure was revised up from the initial reading, with consumer spending, government spending and exports revised downwards. Meanwhile, business investment and inventories were revised downwards. Commercial investment, known as non-residential fixed investment...

  The Federal Reserve could end its rate hike cycle if the job market and economic growth continue to slow at their current slow pace, the former Boston Fed president said on Wednesday. Financial marekt generally expects the Fed to keep rates on hold at its Sept. 19-20 policy meeting, but views differ on whether to pause or further hikes in November, according to CME Group's FedWatch tool. "As long as it looks like we're on track to gradually reach Fed 2% inflation...

  The People's Bank of China authorized the China Foreign Exchange Trading Center to announce that on August 31, 2023, the central parity rate of the RMB exchange rate in the interbank foreign exchange market will be 7.1811 yuan for 1 US dollar, 7.9271 yuan for 1 euro, 4.9847 yuan for 100 yen, 0.91538 yuan for 1 Hong Kong dollar, 9.2252 yuan for 1 pound, 4.7094 yuan for 1 Australian dollar, and 4.7094 yuan for 1 New Zealand dollar.

  In his press conference, Powell repeatedly emphasized that high inflation disproportionately affects low-income people, because they are the hardest to afford high food, transportation, and housing costs. Although inflation in the United States has fallen sharply from its peak last summer, this only shows that the rate of price increases has slowed down, and the prices of these necessities have not decreased. Under the dual burden of high prices and high interest rates, more and more low-income Americans are delinquent on rent and cannot afford food, which has exacerbated the...

  U.S. employers reported fewer job openings last month, a further sign that a robust labor market is gradually cooling as the economy slows under the weight of high interest rates. The Labor Department reported Tuesday that seasonally adjusted job openings fell by 338,000 in July from the previous month to 8.80 million. That's the lowest level since March 2021, but still well above pre-epidemic levels and the number of job losses 5.80 million in July.

  On August 30, FX reminded investors of the key data to pay attention to: the euro (1.0868, -0.0010, -0.09%) zone economic sentiment index in August, the euro zone industrial sentiment index in August, the final value of the euro zone consumer confidence index in August, the change of ADP employment in the United States in August, the preliminary monthly rate of wholesale inventories in the United States in July, and the change of EIA crude oil inventories in the week ending August 25 in the United States. Major events to pay attention to include the Japanese central bank...