USD/USD rises on Monday afternoon

Despite the general weakening of the US dollar, the US dollar/renminbi remained high at midday on Monday (November 1). This week the Federal Reserve (FED) will hold an interest rate decision. The market expects that the Fed may implement the second round of quantitative easing measures, which will have an important impact on the recent trend of the US dollar. Therefore, the market has a thicker wait-and-see atmosphere and it is waiting for the news to give clear guidelines.

In the inquiry market, USD/Renminbi reported 6.6751, which closed at 6.6708 on Friday.

The European Bank’s traders in Shanghai pointed out that the USD/CNY has so far fluctuate within the range of 6.6730-6.6755.

The trader pointed out that although the U.S. dollar weakened in overseas markets, the central bank’s (PBOC) middle price was only slightly lower than last Friday’s level, which probably conveyed the signal that the central bank currently wants to maintain the stability of the U.S. dollar exchange rate; The rest of the trading day is expected to fluctuate at 6.6700-6.6750.

The median price of USD/RMB fell slightly from 6.6908 last Friday to 6.6886.

Some domestic bank dealers stated that investors are waiting for the Fed’s resolution to see how big the quantitative easing is; how recently the adjustment of the renminbi is a two-way fluctuation in the appreciation, and the central bank will control the short-term acceleration too fast, but this will not change. The long-term trend of stronger renminbi.

The trader also pointed out that the original market generally believed that the appreciation of the renminbi would have a great impact on exporters. However, at present, China is working to improve the structure of its export products. In this direction, as long as the speed is properly controlled, the negative impact of RMB appreciation can be overcome. Gradually, the central bank may also think that for a period of smooth transition, export companies can adapt.

At 14:14 Beijing time, USD/Renminbi reported 6.6756/58.