Overnight, The S&P 500 index fell 2% to 3821.55 points. The 2-year Treasury bond yield fell 1.16 basis points to 3.1096%; the 10-year Treasury bond yield fell 2.82 basis points to 3.1715%; June U.S. consumer confidence dropped to the weakest in 16 months; the presidents of the New York and San Francisco Feds are confident in the U.S. economy, saying that the United States can avoid recession even if raises interest rates ; ECB President Lagarde confirmed that in 7 Plan to raise interest rates for the first time in March by 25 basis points; OPEC+ crude oil production has fallen behind the target by more than 500 million barrels since May 2020.
Before the domestic market opened, the central bank conducted a 100 billion 7-day reverse repo operation with a winning interest rate of 2.1%. The central parity rate of RMB at 9:15 USD was 6.7035, and the market expected 6.7030.
The U.S. dollar rose overnight. The onshore U.S. dollar and RMB opened at 6.7050. The high profit margin pushed the market to a minimum of 6.6976. Buying drove the USD and RMB up to around 6.707, before falling back after trying this level twice in the morning without success. In the afternoon, the market fell back to 6.699, which was supported. Affected by the weakening of the euro, the dollar and renminbi quickly rebounded to a maximum of 6.7102. However, there was insufficient subsequent buying, and the market fell back and broke through the intraday low, with the lowest transaction being 6.6939 before rebounding. The transaction price was 6.6972 at 16:30, and the market volume was US$33.2 billion.
Yesterday, the U.S. dollar index rebounded for no particular reason. The U.S. dollar and RMB actually climbed to 6.71 at night, but the selling pressure was heavy during the day, and there was not much buying even if the stock market went down. In the afternoon, there was news that the asterisk mark on communication itinerary cards was cancelled, and the RMB appreciated slightly. At present, the US dollar and the yuan still have no direction. I continue to hold a short position in the euro and US dollar and a long position in the US dollar and yen.
