Safe-haven demand rebounded as the US dollar index rose on the 8th

Due to the rebound in market risk aversion and the market's attention to Powell's attendance at the congressional hearing, the US dollar rose against a basket of currencies on the 8th. The US dollar index fluctuated strongly in the overnight market. It turned from rising to falling in the morning of the same day, and then turned from falling to rising. The US dollar index rose at the end of the trading day.

The US dollar index, which measures the US dollar against six major currencies, rose 0.12% on the day and closed at 105.000 at the end of the foreign exchange market.

On the same day, the overall price of risk assets in the international capital market weakened, and the risk aversion demand rebounded, which brought support to the US dollar.

Vladimir Zernov, a market analyst at the foreign exchange information website FXEmpire, said on the same day that in the absence of strong stimulus factors, the US dollar index is trying to rebound from its recent decline. Fed Chairman Powell will begin attending the US Congressional hearing on the 9th, and traders are not prepared to allow large fluctuations in the exchange rate before this key event.

Jerry Chen, senior analyst at foreign exchange broker Gain Capital, believes that the market will pay attention to how Powell views the latest changes in the job market at this week's congressional hearing and whether he will give further hints on interest rate cuts.

Zernov said that Germany's import and export data for May released earlier that day showed that Germany's exports fell 3.6% month-on-month, indicating that the German economy is still under pressure, but has not yet brought substantial negative impact on the euro.

Jerry Chen said that although the ranking of party votes in the second round of the French parliamentary elections was a big upset and increased the uncertainty of the policy outlook, it will not change the outcome that the president and the prime minister belong to two camps. The left-wing alliance has stated that it will not govern with the Macron camp, which is bound to make it impossible for France to pass major bills smoothly in the next three years (Macron's term will last until 2027), and it will not be able to change the current high fiscal deficit situation, which is an unstable factor for France, the European Union and the euro.

Jerry Chen said that after seven consecutive days of gains, the euro opened slightly lower on the 8th due to the results of the French parliamentary elections, but still remained above 1.0800. The subsequent impact of the French election still needs time to fully manifest, but the short-term interference of political factors on the euro may gradually decrease. The technical resistance of 1.0850/70 and the US consumer price index are the focus of this week. If the increase in the US consumer price index continues to decline, it is expected to help the euro break through the resistance of the trend line and hit the 1.0900 line.

As of the end of the New York foreign exchange market, 1 euro was exchanged for 1.0826 US dollars, lower than 1.0837 US dollars on the previous trading day; 1 pound was exchanged for 1.2812 US dollars, lower than 1.2817 US dollars on the previous trading day.

1 US dollar is exchanged for 160.79 Japanese yen, higher than 160.72 Japanese yen on the previous trading day; 1 US dollar is exchanged for 0.8971 Swiss francs, higher than 0.8959 Swiss francs on the previous trading day; 1 US dollar is exchanged for 1.3639 Canadian dollars, higher than 1.3628 Canadian dollars on the previous trading day; 1 US dollar is exchanged for 10.5695 Swedish kronor, higher than 10.4776 Swedish kronor on the previous trading day.