Inflation expectations push up the euro

Foreign exchange trader of Agricultural Bank of China Zhang Zhigang Although the flu virus is still spreading, but the global economic optimism has quietly started, and after more than a year of excessive pessimism, the market long optimistic mood is particularly strong, the market adverse information is artificially reduced and neglected, favorable factors are naturally magnified, Investors seem to usher in a long-awaited economic inflection.　　On the whole, the signs of a global economic bottoming have become increasingly apparent, and after the liquidity crisis is completely lifted, the accumulation of cash will quickly hit gold, crude oil and commodities, and expectations of inflation have begun to emerge, and the euro is expected to be courted again as a traditional currency against inflation. The pace of economic recovery has increased appetite for market risk, a sharp drop in demand for safe havens and a gradual sell-off in the dollar. Investors have contributed to the rise in oil prices in recent weeks as investors have been abandoning cash to invest in hard assets such as crude. The New York Mercantile Exchange's crude oil futures broke through $60 a barrel for the first time since November, the Wednesday closing times of 59.77 USD/barrel. Oil prices have rebounded by 73% per cent since February, when it touched the bottom of a barrel slightly below $34 trillion. The fall in oil prices, which is a further indication of the market's attitude towards the dollar, comes at a low level of demand for US oil products in a decade. CRA International, vice president of the economic consultancy, said that 2.5 billion people in China and India are continuing to reach the middle class, while production in the world's mature oilfields is declining.　　These factors combine to lay a solid foundation for a further strengthening of oil prices, while gold is also buoyed by a steady rise in the prices of commodities such as zinc and nickel, which have stabilized at $900 per ounce. The growing experience of the euro decade suggests that the ECB's stance against inflation stems from its specificity, unlike other central banks that can co-ordinate fiscal policy while exercising influence on the economy, the ECB is a non-sovereign institution whose relatively independent body determines the independence of monetary policy. The euro, which was born to fight the dollar, has been plagued by inflation in Europe after the two World War, giving the ECB more attention to inflation. The euro zone's Stoxx index has risen more than 30% per cent over the past two months as the economic survey shows that the eurozone economy is holding steady. Odonetz, a member of the ECB's governing council, told reporters in Basel that there were signs that the worst of the economy was in the first quarter of this year.　　The stability of the European economy has allowed the euro to lead a return to higher-interest currencies against inflation, a prospect that is starting to bullish on the euro. Trader suggested that the euro still has action to be able to break through the 2008 medium-term decline in the channel, and in the near future breakthrough 1.35 of the important resistance, successfully shake off the 1.30-1.35 range, the future still has stronger action can. Suggested that investors consider in the euro correction to 1.35 near the position, stop loss set at 1.3380, if the future breakthrough 1.3750 of the previous high, will be expected to test 1.40.