Macro Data Support The Fed's Decision &Nbsp; &Nbsp; The Dollar Exchange Rate Fell On Wednesday.

Beijing time on the morning of November 18th, early Wednesday, multiple groups Us macro data It shows that the current economic situation proves the necessity for the Federal Reserve to further relax its monetary policy and implement the 100 billion scale treasury bond purchase plan. The dollar was encouraged to narrow its previous decline against the euro and other major currencies, but remained weak for a day.

On the same day, market participants were also highly concerned about whether Ireland would accept aid for the financial industry. Euro Rally It has also been limited to a certain extent.

Close to the foreign exchange market, tracking a package of six main currencies. US dollar index 79.11 points, down 0.13%. The euro rose to 0.22% against the dollar on Wednesday, while the US dollar closed at 83.27 yen, or 0.13%, against the Japanese yen, while the pound gained 0.06% from the US dollar at 1.5898 US dollars in 1.3521. The dollar is once again a relatively safe investment product because of the current market focus and the prospect of the euro zone debt crisis. The US dollar has recovered more than 1.3% this week.

The US consumer price index released in October was lower than market expectations in October, while the number of new housing starts in October was 519 thousand, down 11.7%, the lowest level in 18 months. The two set of data shows that the outlook for the US economy is not optimistic. Analysts pointed out that today's two sets of macro data just show that the Fed's decision to continue to inject money into the financial system to stimulate the growth of the US economy is reasonable.

Michael Wolf J, a senior currency analyst at Mellon bank in New York, pointed out that "today's consumer price index report once again confirms that inflation tends to be stable and remains at a low level. The Fed has become uneasy. "

However, the market admits that with the continuation of the Irish debt crisis, the euro is still quite fragile and is facing continuous selling pressure. Dean Po M Weil, chief currency strategist of Ao anda company, said, "the market has been severely hit and severely shrunk in the past few trading days. Today's macro data provide supporting evidence for the Fed's decision. This is a blow to the euro, but it is far from enough. " He added, "once Ireland comes to a conclusion, we will face the danger of crisis spreading. Spain has a similar problem with Ireland. "

On Wednesday, the 27 EU finance ministers' meeting continued in Brussels. Officials from the European Commission, the European Central Bank and the International Monetary Fund are scheduled to discuss this week with the Irish government on stabilizing the country's financial situation. The Irish financial crisis has seriously raised the cost of issuing bonds in the country, and has led to the increase in yields of many high deficit euro zone countries.

"The euro has fallen below US $1.35 against the US dollar, taking into account the uncertainty of Ireland's acceptance of EU aid," the analyst of Credit Union Bank of Italy said in its customer report on Wednesday. We believe that the decline may be maintained at a level of US $1.3420. If Ireland agrees to accept aid, the euro will rebound. But we do not think the increase will be too great. The bank expects the euro to meet the US dollar at a recent ceiling of $1.37 to $1.38.