FX168 Financial News (Hong Kong) News August 1st, 22:30 to August 2, 06:30, the market summary: the US dollar index fell back, mainly due to the sharp rise of the yen. Federal Reserve Chairman Powell said on Wednesday that the Fed cut interest rates by 25 basis points for the first time since the financial crisis, not the beginning of a broader relaxation of monetary policy. After that, the US dollar index hit a two-year high. However, due to the sharp rise in trade uncertainty, the market risk sentiment was hit, and the safe-haven yen rose so that the dollar retreated. The 10-year US Treasury yield fell to a minimum of 1.878% since November 2016, the first time in more than two years that it fell below the key technical level of 2%.
 
At the same time, the reversal of the dollar caused the euro to return to the rising range against the dollar, after the euro fell to a 26-month low against the dollar after the Fed’s comments led the dollar to climb. Investors expect that the European Central Bank will take a more radical stance than the Fed in relaxing monetary policy, which will curb the market's interest in the euro. The pound continued to remain low as the possibility of a UK non-official exchange rate increased.
 
On Wednesday, Trump expressed disappointment that the Fed did not cut interest rates significantly. Trump, who has launched a campaign for re-election in 2020, has repeatedly called on the Fed to ease monetary policy.
 
Analysis of major currency trends:
 
EUR/USD: The session opened at 1.1056, retraced after the session and then traded near 1.1081. From a technical point of view, the MACD green kinetic energy column is basically flat, and the KDJ indicator is flat, indicating that the action under the short-term exchange rate has not subsided. The initial resistance of the exchange rate is at 1.1111, the further resistance is at 1.1138, the key resistance is at 1.1180, the initial support for the downside is at 1.1043, the further support is at 1.1000, and the more critical support is at 1.0974.
 
GBP/USD: The session opened at 1.2116 during the session and fluctuated within the session, trading late around 1.2119. From a technical point of view, the MACD green kinetic energy column contracted slightly, and the KDJ indicator was flat, indicating that the downward trend of the exchange rate has not changed. The initial resistance of the exchange rate is at 1.2174, the further resistance is at 1.2219, the more critical resistance is at 1.2266; the initial support for the downside is at 1.2081, the further support is at 1.2034, and the more critical support is at 1.1989.
 
USD/JPY: The session opened at 108.30, and the pressure fell sharply during the session, trading at around 107.41. From a technical point of view, the MACD red kinetic energy column has shrunk, and the KDJ indicator points below the mid-line, suggesting that the recent trend of the exchange rate has re-emptied. The initial resistance of the exchange rate is at 108.68, the further resistance is at 110.03, the more critical resistance is at 110.74; the initial support for the downside is at 106.62, the further support is at 105.91, and the more critical support is at 104.56.