Lates News

China Securities Research Report stated that the US dollar index has recently rapidly strengthened and gold prices have subsequently fallen below the $4000 per ounce mark. The market's reduced concerns about inflation have not led to a weakening of the US dollar. We believe that the political "re-dollarization" can partly explain the recent strength of the US dollar, but the more important driving factor should come from expectations of tightening US dollar liquidity. We expect the US dollar index to have support for the year, but it may be difficult to sustain its high levels. A US inflation data release could be a catalyst for market adjustments in trading strategies.