Germany will stop the ECB’s debt purchase plan
The German Supreme Court ruled that the European Central Bank ’s debt purchase plan was partially unconstitutional, and therefore ruled that the German Central Bank must stop buying national debt in accordance with the ECB ’s long-term stimulus plan within the next three months, unless the European Central Bank can prove the need for the plan The ruling does not apply to the latest anti- epidemic plan. The case dates back to 3 years ago, when the German court opposed the German central bank’s participation in the public sector debt purchase program. The ruling triggered market concerns about the sustainability of the ECB’s debt-buying program, which weighed on the euro’s exchange rate. However, on the other hand, the market believes that as long as the ECB proves the suitability and necessity of the bond purchase plan, it will not affect the future bond purchase plan.
The U.S. trade deficit expanded to $ 44.4 billion in March
In the face of the epidemic, it is difficult for Americans to go out for consumption. In this case, it was thought that the US trade deficit would be reduced. But the interesting thing is that this idea is not correct. Last night’s figures showed that the US trade deficit expanded to US $ 44.4 billion in March, a significant increase of 11.6% month-on-month. This was mainly due to a 9.6% drop in exports. Affected by the epidemic, Americans did reduce their consumption, but imports fell by only 6.2%, far less than exports. I believe this is what caused the US trade deficit to climb sharply in the epidemic. The greater the trade deficit, the more dollars will be lost from the United States, which can be seen as an unfavorable dollar factor
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