The Euro Exchange Rate Is At A Long-Term Equilibrium Level. There Is No Need For Strong Intervention.

< p > a senior EU official said on Friday (April 27th) that the finance ministers of the "a href=" //www.sjfzxm.com/news/index_c.asp "euro" /a "region will discuss the euro exchange rate and its impact on the economy in May 5th, but the current exchange rate is close to the long-term average price.

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(P) the European Central Bank said earlier in April that strengthening the euro exchange rate is an important factor in the sharp decline in inflation.

The ECB will also send representatives to the Ministerial Conference in May 5th.

The ECB has also said before that the ECB will use monetary policy to cope with further appreciation of the euro.

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< p > but the senior official of the European Union said that the euro exchange rate is more or less in a long-term equilibrium state. The recent changes in exchange rate lead to < a href= "//www.sjfzxm.com/news/index_c.asp" > inflation < /a > below average, and of course, the decline of commodity prices should also be taken into consideration.

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< p > and the official expects that there will be no heated debate on the "a href=" //www.sjfzxm.com/news/index_c.asp "exchange rate policy < /a >. In fact, as long as we observe the impact of exchange rate fluctuations on the current economic situation, we can draw this conclusion.

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< p > he also pointed out that the finance ministers of the euro area countries are unlikely to comment too much on the non-traditional monetary easing policies such as the European Central Bank may buy bonds.

The focus of the discussion will be on the economic situation itself, although the economy is not not affected by inflation.

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< p > despite the slight rise in the central parity of RMB against the US dollar, the yuan continued its recent weakness in the spot market and fell below the key point of 6.25.

The market expects that there will be a downward trend in the renminbi against the US dollar, but the rate of depreciation is very limited.

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< p > 25, the central parity of RMB against the US dollar was 6.1576, rising for three consecutive trading days.

However, in the spot market, the RMB ignored the middle price against the US dollar, and the weakness was below 6.25, and the lowest fell to 6.2589.

On that day, the spot exchange rate deviated from the middle price reached 1.6%, the largest since the reform.

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< p > from a technical analysis, analysts at the exchange risk control center expect the RMB to support the US dollar in the near future at 6.2650, with resistance at 6.2050.

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< p > if the price of RMB against the US dollar was 6.05 at the beginning of this year, the RMB has depreciated by 3.12%, almost to the year-round year-round increase.

The reason for the sharp depreciation of the renminbi is still controversial.

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< p > since February, market signals mixed with regulators' ambiguous attitude toward exchange rate issues, the willingness of enterprises to buy foreign exchange to avoid risks is gradually becoming stronger, breaking the unilateral appreciation expectation of RMB.

Overall, the market's interest in Renminbi assets has decreased.

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Fu Peng, chief macroeconomic adviser of Galaxy Futures Research Center, told reporters that the monetary authority may prefer that the RMB can be stabilized at the current level of two-way fluctuations, rather than the formation of unilateral depreciation expectations, so the depreciation of the RMB has little room for P.

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