Waiting For Portuguese Bond Auction Results &Nbsp; Dollar Exchange Rate Rose On Tuesday.

Tuesday morning, Beijing time, on Tuesday, the market was right. Portugal Is there any ability to successfully carry out the new round? Treasury bond auction It has raised doubts about its own financing, while investors waited for the results to be released on Wednesday. dollar At the same time, the downturn in the stock market also made investors reluctant to stay in high-risk assets. The US dollar once again became one of the choices of investors. On Tuesday, it rose against a variety of currencies.

John Dojell, a currency analyst at TPAs consultancy, points out that there are some changes in market sentiment. Before the recent decline in the US dollar, the market is concerned about the sovereign debt of the eurozone, and now these problems are emerging again.

The euro fell to 0.40% against the dollar on Tuesday at $1.3862. The euro rose to $1.3974 in the previous European trading session, and one of the driving factors was the news of Greece's successful auction of new bonds.

At the close of the foreign exchange market, the US dollar index for tracking six major currencies was 77.72 points, or 0.90%. Sterling fell to 0.60% against the US dollar at $1.6046, while the US dollar was 81.15 yen against the yen, unchanged from Monday.

The US stock market was flat and small on Tuesday. The standard & Poor's 500 index fell 0.81% on the same day. The euro follows the trend of the US stock market, as Dojell said, "many people believe that the US stock market will have a small reversal or a callback. Once it happens and the margin is enough, the euro may return to the level of $1.35. Other analysts pointed out that Greece successfully completed 300 million euros (417 million 200 thousand dollars) 26 week short term auction on a relatively high yield on Tuesday, which also provided some support for the euro.

On the other hand, market attention turned to Portugal later on Tuesday. Portugal is scheduled to auction 1 billion 250 million euro bonds on Wednesday. Matthew West Mars, senior fixed income and currency strategist at RBC capital market, believes that any adverse result will lead to the sell-off of the euro. Moreover, even if the auction is successful, it will be regarded as a small victory in the arduous financial war, and there will not be much reversal in the overall situation. Data showed that the cost of default on Portuguese national debt reached its highest level on Monday. On Tuesday, the price of credit default swap contracts for 5 - year Treasuries fell from 467 points on Monday to 457.4 points. That is to say, the cost of default guarantee for Portuguese national debt of US $10 million is US $457 thousand and 400 per year.

At the same time, the price of Irish debt default swap contracts has also dropped from Monday's record highs, at a level close to the cost of guarantee against default in Argentina. Argentina is a survivor of the sovereign credit crisis. In 2001, Argentina took a default on the record $100 billion debt.

Casey Lun, director of GFT monetary research, points out that "the Chinese government has already expressed its deep concern about the prospect that the Chinese government has no investment attractive low yield and depreciation prospects will push speculative capital into emerging markets in Asia". This decision shows that the PBC may announce interest rates again in the near future in an attempt to reduce the attractiveness of high-risk assets to dealers.