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Hello everyone, today XM Foreign Exchange will bring you "[XM Official Website]: How to rewritten the trading logic of the foreign exchange market?" Hope it will be helpful to you! The original content is as follows:
XM Foreign Exchange APP News - On Wednesday (September 3), the global financial markets remained filled with a prudent atmosphere, especially in the context of the continued high long-term bond yields. Although the recent wave of bond selling has cooled down, market participants remain highly vigilant about the high debt levels and potential fiscal risks of various countries. This sentiment is profoundly affecting the latest quotation of the US dollar index at 98.2710, a slight decline of 0.03% during the day. Meanwhile, the euro was quoted at 1.1653 against the US dollar, up 0.15% during the day. This slight reverse change is not accidental, it deeply reflects the core contradiction in the current market: the drastic fluctuations in long-term bond yields in major economies around the world. Long-term government bond yields, from Japan to the UK, have generally hit years of highs, behind which are investors' concerns about high-debt economies. As a well-known head of fixed income research in institutions said, the demand for ultra-long-term bonds by institutional investors has weakened significantly, which has exacerbated the fragility of the market. Specifically, the UK's 30-year Treasury bond yield once hit a new high since 1998, followed by a decline in the pound, reflecting the market's concerns about the UK's high borrowing levels and slowing economic growth. Similarly, the U.S. 30-year Treasury yield hit a key psychological threshold of 5% for the first time since mid-July, while the German Treasury yield also rose to its high since 2011. Together, these phenomena point to a core issue: Investors are reevaluating the risk premium of sovereign debt in countries. On the news side, the political dynamics of various countries have also added uncertainty to the market. The restructuring of the British Prime Minister's cabinet and market speculation about future tax increases may curb economic activity. French Prime Minister's vote of confidence and rumors that Japanese Prime Minister may step down due to election defeat have exacerbated the cityRisk aversion in the field. These political risks and fiscal difficulties are intertwined, and together they constitute the main driving force behind pressure on the bond market. It is worth noting that although the large-scale bond issuance on Tuesday puts pressure on the market, eurozone bond yields fell during trading on Wednesday, and long-term yields in the United States and the United Kingdom also pulled back from highs. However, this is just surface calm. A portfolio manager noted that market participants are once again focusing on fiscal deficits and political risks, a theme that is likely to continue to ferment during the year. Looking ahead to the future market, the upcoming U.S. employment data will become the focus. A head of foreign exchange and interest rate research at a well-known institution said that if non-farm employment data are stronger than expected, the market will examine from a technical perspective. Overall, the turmoil in the global bond market is the main driving force for current foreign exchange market volatility. The short-term trend of the dollar will continue to be affected by yield volatility and upcoming U.S. employment data. On the technical side, the US dollar index still faces short-term resistance under the pressure of moving averages, but the support below is still strong, indicating that its downside space is limited. The euro and the U.S. dollar have shown a certain upward momentum, but they still need to break through key technical resistance levels. In the future, the market focus will continue to focus on fiscal policies, economic data and political risks of various countries. If the selling sentiment in the bond market heats up again, or if the key economic data exceeds expectations, it may trigger violent fluctuations in the foreign exchange market. Senior traders need to pay close attention to these macro variables, and oalcs.cnbined with the above content, the entire content about "[XM official website]: How to rewrite the trading logic of the foreign exchange market?" is carefully oalcs.cnpiled and edited by the XM foreign exchange editor. I hope it will be helpful to your trading! Thanks for the support!
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