Why is the pound and the euro rising and the dollar falling? Is there a connection?

The rise and fall of foreign exchange is directly related to the country's economic indicators, such as the non-farm production value of the United States, GDP, housing sales, consumer confidence index, etc.

In layman's terms, if a country has a better economy for a certain period of time, then the currency of that country will also increase in value during that time, and vice versa.

The fundamental reason for the continuous increase in the dollar index is the "double deficit" of the United States, that is, the deficit and the fiscal deficit. The consumption sector of the United States accounts for as much as two-thirds of the entire economy, and its consumption capacity far exceeds its domestic production capacity, and the current account deficit caused by the import of a large number of consumer goods must be made up by the capital account surplus, and the large issuance of dollars causes the dollar to depreciate; On the other hand, the U.S. has a general** excessive fiscal deficit.

The depreciation of the US dollar has laid the foundation for the upward trend of gold prices. However, the US dollar, as the world's largest reserve currency, has also shown good adaptability and resilience.

There may be a forex ** hand in which the hype.

Foreign ** hands are very terrible and very bad for the renminbi.

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On Tuesday (September 4) in the early European market, the euro and the dollar continued to fall, falling to the lowest; GBP The US dollar extended its decline, reaching its lowest touch, as the US dollar rose across the board and rose to its highest level during the day.

Regarding the US dollar: Analysts note that the US dollar index has reversed yesterday's retracement and is now testing new multi-day highs in the area, approaching the 21-day key at which it is located.

The upside in the US dollar was mainly accompanied by a return to the top of the US 10-year Treasury yield, as well as the US and China** dispute and expectations of further tightening by the Federal Reserve.

From a technical point of view, if the July 19th high is broken, it will be looked to, and then it is. On the downside, the next support is located, followed by and.

About the euro: The euro dollar fell sharply, falling to the lowest. According to analysts, downward pressure on EURUSD is now increasing, extending last week's decline since the regional blockade.

Further retracement will revert back to the 21st** where it finds initial support, and then more importantly. On the upside, it will take an effective burst to break the area to retest, and then the level.

In addition to the strengthening of the US dollar, which weighed on the euro, Italy's fiscal concerns are one of the key factors restraining the upward movement of the euro. The 10-year Italian-German bund yield spread widened to its highest level since 2013.

From a technical point of view, technically, the exchange rate is from **, and the daily chart may build a double top. The 100-day** remains a key short-term resistance. Short-term resistance is located and will rise if broken.

The downside support is located at a break that will accelerate the fall direction, and if it breaks, it will fall deeply. The key support is located and then for. Traitors.

According to traders quoted by foreign media, the recent Fibonacci level is supporting the market and is the retracement level from the uptrend on the EBS platform in August.

It also pointed out that the possibility of a sharp rebound in the next few days is increasing, but the buying point is still there, in case there is any unexpected performance in the near future, and only when it falls below the 50% retracement level of the rally, it can be postponed**.

About the pound: From a technical point of view, the pound and the dollar have broken below the upward trend line, and the 4-hour chart shows that the ** from the lows has ended, forming a short-term top.

In addition, a block on August 30 at 50** and yesterday's close below the 10day** suggests a bearish reversal, so the GBPUSD could fall below during the day, which would open the door to a retest of recent lows.

On the upside, the daily chart needs to close above the 50-day** to confirm the bullish reversal.

On the news side, Brexit worries intensified, coupled with weak economic data, the pound suffered a sharp sell-off overnight ......Today, Bank of England Governor Mark Carney and members of the Monetary Policy Committee will attend a hearing on the August inflation report.

It is mainly a problem of regulation and control of the capitalist market economy, and the rise in short-term social comprehensive costs caused by Brexit has led to a decline in the purchasing power of the unit currency.

Brexit will lead to a significant reduction in the number of Europeans coming from the UK, and it makes little sense for some GBP holders to continue to hold the GBP. The UK** will remain out of Europe, with increased instability that could lead to significant economic volatility. Some companies will suffer a setback in their economic activity in the UK and will have to withdraw.

It also includes the psychological expectation that many people will have a depreciation of the pound.

and so on, as a result of such factors, the holding of the pound began to decline, the supply and demand curve began to act, and the pound directly depreciated. Seeing this, people who were afraid that the pound would continue to depreciate also sold the pound in their hands, so the group began to sell the pound in their hands and turned to a more stable and profitable currency.

As a member of the European Economic Community, the UK still enjoys a lot of benefits brought by the EU, and there is a lot of interdependence on economic development. Once the UK leaves the EU, its economic development will inevitably be dragged down to a certain extent, the economy will decline, and the economic growth will slow down, which will inevitably cause the situation of the pound sterling.

On the other hand, in the United States, the newly elected country**,** comes with many policies that can stimulate the growth of the US economy, and the Fed's interest rate hike process is also progressing step by step, so Brexit has little impact on it, and even many people who buy pounds turn to the dollar and use the dollar as a hedge.

First of all, Brexit is negative news for the British economy, once the UK leaves the EU, the UK can not easily enter the EU, the world's largest single market, the EU market accounts for more than half of the UK's exports, exports account for about 15% of the UK's GDP, think about how much of a value, the UK, as one of the EU members, enjoys a variety of EU ** preferences, especially the UK's financial industry, EU member states can automatically obtain a financial license, That is, it can easily provide all kinds of financial services for the EU people, as the world's four major financial centers, London, if the urban EU market, the result will be, you can imagine.

There is also the introduction of the European Union by the United Kingdom, which requires the signing of bilateral ** agreements with each of the EU member states, which is a long and arduous process, with 80,000 pages of ** agreements needing to be reformulated, and its time span is at least a few years. And until an agreement is reached, how the UK deals with other countries is also a challenge for the UK.

All of the above is negative for the British economy, and the most important factor in determining the exchange rate is the economic fundamentals of a country, and it is not surprising that the British economy is expected to turn downward, and the pound sterling** is also reasonable, so it is not surprising that the US dollar exchange rate will rise.

Of course, Brexit is also bad news for the EU, it can be said that both sides are lost, first of all, the EU lost the second largest economy in the EU, and the permanent members of the Security Council themselves have challenged the stability of the EU as a single economy, and secondly, the UK pays about 1 8 of the budget every year, after losing the UK, who will fill the money in the future has become a huge question mark, in today's economic situation, I believe that everyone is living in a tight belt, and the EU does not have enough budget, Services for the majority of EU members will also be significantly discounted.

Since Brexit has such a big drawback, why does the UK still have Brexit, the biggest reason is the immigration problem, because in the EU, services, labor, and goods can flow freely, and many immigrants have robbed the jobs of British natives, and pulled down the wage level in the UK. Britain itself needs to think about this issue as well.

Britain's departure from the European Union has directly or indirectly caused the image of Britain as a "single person"! At the same time, the EU has lost its biggest EU partner! ......Therefore, the EU currency represented by the British pound** is a testament to the "decline" of the EU!

The dollar "took the opportunity" to explode!

Why does Brexit lead to an increase in the pound sterling** and the dollar? In fact, this is just a guess, and no one can say for sure.

Brexit The UK and various European countries will impose tariffs, which will definitely affect the UK's economic development, and it is natural that negative expectations for the UK economy will lead to a sharp fall in the pound. As a world currency, the US dollar is inevitably favored by safe-haven funds.

In short: I used to be an executive, but now I am an employee, with less credit and less power.

After the euro, the pound is about to fall to parity against the dollar, mainly because the United Kingdom is carrying out the policy of Brexit, which makes the purchasing power of the pound decline, followed by the United Kingdom** is using some effective means to control the decline in the purchasing power of the pound, and then the British market needs to face greater inflationary impact, in addition, the investment activity of the British economic market and investor confidence in it are declining, and there is that the British cooperation channel will face a reduction. It is necessary to explain and analyze the impact on the UK market from the following five aspects: the pound is about to fall to parity against the dollar after the euro, and what will be the impact on the UK market.

First, the United Kingdom is carrying out a Brexit policy, which has reduced the purchasing power of the British pound

The first is that the United Kingdom is carrying out a Brexit policy, which makes the purchasing power of the British pound is decreasing, and for the United Kingdom, they are making some Brexit policy decisions, which makes the purchasing power of the British fiat currency decrease, and the international community is reducing the use of the British pound.

Second, the United Kingdom** is using some effective means to control the phenomenon of the decline in the purchasing power of the pound

The second is that the United Kingdom is carrying out the policy of Brexit, which makes the purchasing power of the pound is declining, and for the United Kingdom, they hope to control the decline in the purchasing power of the pound through some effective means to better meet the needs of social development.

Third, the UK market needs to face the impact of greater inflation

In addition, the United Kingdom is in the process of Brexit, which makes the purchasing power of the pound decrease, and for the British market, it needs to face some greater inflationary effects, which makes the cost of living of the people** and the happiness of the people decrease

Fourth, investment activity in the UK economic market and investor confidence in it are declining

In addition, the investment activity of the British economic market and the confidence of investors in it are declining, and for the United Kingdom, their investment market activity is declining, so investors will reduce their investment in the British economic market.

Fifth, the UK's cooperation channels will be reduced

There is also the fact that the UK's cooperation channels will be reduced, and for the UK, if their cooperation channels are reduced, it will have a negative impact on their long-term development.

Do's and don'ts for the UK:

The release of some favorable policies should be strengthened.

The pound has fallen to the dollar from a high of £1 against the dollar in mid-2021, just above the pandemic lows set in March 2020. Europe's energy crisis will tip both the eurozone and the UK into recession, while the US slowdown will be mild. This will lead to further weakness in the euro and pound against the dollar.

The euro has fallen below parity against the dollar.

The pound fell against the euro, and the central bank report of the British Burning and Selling Countries raised the market's expectations that the central bank may raise interest rates earlier, and the depreciation of the pound could also reduce the drag on inflation.

It will put a lot of pressure on the UK market, and it will also affect the overall economic performance, which may make the UK collapse.

The euro is the basic unit of currency in the 12 countries of Europe. It was officially put into use on January 1, 2002. The ISO 4217 standard of the International Organization for Standardization** is EUR. The idiomatic symbol is .

A total of 12 of the 25 member states of the European Union currently use the euro, including Ireland, Austria, Belgium, Germany, France, Finland, the Netherlands, Luxembourg, Portugal, Spain, Greece and Italy. The euro is also used by countries that are not members of the European Union, such as San Marino, the Vatican, Andorra and Monaco, as well as Montenegro and Kosovo.

Issuer: EuropeanCentralBank

Currency symbol: EUR

Coins rounded: 1 euro = 100 cents

Banknote denomination Euro. The coinage is available in 8 denominations: cents, 1 euro, and 2 euros.

The main characteristics of sterling cash can be summarized as follows:

Currency name: British pound (pound, sterling).

Issuer: Bank of England

Currency symbol: GBP

Coins rounded: £1 = 100 pence

Banknote denomination pounds.

As Britain was the first industrialized country in the world and once dominated the international financial industry, the British pound was once the most widely used currency in international settlement business. After World War I and World War II, the economic status of the United Kingdom continued to decline, but due to historical reasons, the British financial industry is still very developed, and the British pound still occupies a considerable position in the settlement of foreign exchange transactions.

Currency Name: Spot Price**Price, Cash** Price, Selling Price, Benchmark Price, Bank of China Converted Price, Release Time.

GBP 11:26:49

EUR 11:26:49