Tan Yaling Sees More Dollar Strength

Key points from her article this week (Google translated):

Especially economic optimism data show a solid basis for the exchange rate, including employment rates, productivity and inflation rate seems to favor a stronger exchange rate

......Especially as debt sensitive period in September, the U.S. Treasury Department released data show that the size of the country's budget deficit this year in August to $ 129 billion, slightly lower than the previous estimate of $ 130 billion, when compared to August 2013 recorded a $ 148 billion deficit is reduced by about 13%. Data also show that the first 11 months of the 2013-14 fiscal year, America's total deficit of $ 589 billion, down from $ 755 billion over the same period of fiscal year 2012-13, which is also for the same period since the 2007-08 fiscal year the minimum size of the deficit before that massive economic crisis since. American economic improvement of the situation is reflected in all aspects of economic and financial, to give the dollar adjustment to bring up the full argument and reason. U.S. debt problems delayed hype has strong design and strategic factors.

...... Such as Italy, the third time since the 2008 recession, which many neighbors still trying to recover from the debt crisis of the same. To this end the EU finance ministers and the European Central Bank president Mario Draghi will be more focused on the European Central Bank 's latest move assist the economy and avoid deflation, which form a large negative pressure on the euro, the euro is the flow, adapt to technical requirements significantly. Coupled with then German economy is strong growth in the second quarter, subject to industrial output and construction support, but economic growth may be slowing after. Germany's central bank believes that more and more signs that economic growth is slowing.

This part shows the Chinese thinking on the U.S. dollar:

Strong dollar is not the price factor status and role, but the institutional and market factors, increased supply of dollars is the purpose of expansion and monopolize all global markets, the dollar market opportunity and the environment is the key.

Printing the dollar as part of a market share strategy: Triffin's dilemma from the opposite side.

She sees a rebound in foreign currencies coming, but dollar strength will continue.

From Hexun: 谭雅玲：美元上行加快存在汇率变化设计