DailyFX Market echo the gradual spread of inflation fears, face value of the dollar revaluation

 U.S. dollar last week inverted After China, Japan announced it would buy European bonds, and some of the country into a debt trap bond auction a success, greatly easing market concerns about the crisis for European bonds. The focus is switched back to dollars. Emerging markets, inflationary pressures increased recently occupied the pages of the world's major financial media, it can not help but doubt the dollar in which to play. Friday's U.S. inflation rose by 1.5% annual rate, slightly higher than the expected 1.3%, but core inflation remained low at 0.8% level, indicating the Fed did not inject a lot of inflationary pressures in the country, but became The current stock market, commodity bull market and a source of inflationary pressures in emerging countries. The Fed's strategy has been very clear, that is by exporting inflation to ensure that the dollar devaluation in this competition to win money. For other countries, their policy options seemed limited, to accept the currency appreciation to Si, to Si acceptable inflation. Of course, they can also sell U.S. dollar assets by the Fed to fight back, but it may play into the hands the middle of the Federal Reserve, as this will also lead to depreciation of the dollar.

days due to leave the United States closed, Asia, Europe, the lack of important data are also published, so do not rule out short-term foreign exchange transactions continue to fall into the possible range. But longer term, the dollar reversed last week sounded an alarm long, the situation in the flood of liquidity, the dollar held firm seems to be difficult. (He Huaming)

bottom of the range the dollar index test

third test on Friday the dollar index the recent bottom of the range, it now seems more may break down. Days, the lack of important data to promote the market, the dollar index, or is likely to continue low levels. But once the short-term oversold technical indicators have been fixed dollar trend will not be optimistic about the next step. FXCM sentiment from the speculative point of view, almost one-sided to hold dollar speculators net long, and shows dollar is likely to fall further.