The euro's recent trend to allow more foreign exchange concern World Pipe network informed, because the power of the European debt crisis, not the impact of the economic development of the associated countries, the most direct impact on the direction of their currency, the euro. Euro in the European debt crisis enveloped fell down endlessly. Strong the euro Kongfangliliang last week, the dollar fell sharply, and the closing price of 1.30433, received low on last week's line. The dollar fell further this week and increased risk of 1.27000 is the exchange faithful beckon.
Euro area fundamentals of unfavorable factors, the international three rating agencies Fitch, Standard & Poor's and Moody's lowered its sovereign rating of the euro area Member States, bond yields increased substantially in Italy and Spain, the European banking sector will face funding pressures.
New Zealand's fourth quarter, consumer confidence index fell sharply, due to public concerns about the European sovereign debt crisis could lead to global economic decline easing the credit crunch. Consumer confidence slipped to imply that consumer spending will be trapped in the doldrums in the short term, this action means that the central bank will raise interest rates. The RBNZ main Xibolade December 8, hinted that he will be in mid-2012 to maintain interest rates at record low 2.5 percent previously.
Sovereign guarantee scheme of the European Central Bank's direct and effective mitigation of the debt crisis in Europe and ease the pressure on the euro area banking sector, has become the focus of market attention. From the media learned that the practice of sovereign guarantee scheme are as follows: pay an annual guarantee fee of 1%, and comply with the provisions of the European Central Bank and (or) the IMF to implement the structural reform program, Italy and Spain will be able to guarantee of the European Central Bank , for all maturing debt refinancing. This is most likely to promote the two countries' total financing costs to 4% range. Of the program for two years, for the period up to 10-year treasury bonds, Italy and Spain have time to implement the structural reforms. The advantages of the plan: it will be the immediate stabilization of the sovereign credit market; it does not expand the ECB balance sheet, not inflationary; it will be the cost of capital to remain low, making the ECB does not have one or two market buy the bonds. Italy and Spain face a liquidity, rather than pay Force of the guarantee is likely to always have access, but the ECB will be because the service charge. Seen in this light, the sovereign guarantee of the European Central Bank plans to become another key step to solve the debt crisis in Europe, it is worth the market focus.
About the U.S. policy of quantitative easing, last Friday, the Dallas Fed President Fisher said the Fed is not currently considering the introduction of further quantitative easing policy. "QE3 is not currently in the Fed's agenda, if I am going against it. Another round of quantitative easing of the liquidity of the U World steel pipe network editing .S. financial system close to the excess. European debt crisis or the growing U.S. economy derailed, but the more lenient policy is not the solution. Chicago Fed President Evans said that if the Fed adopts a more quantitative easing policy, the U.S. economy will be "good one". He believes that economic recovery in the U.S. and other global countries and regions is very delay, in such an environment, more quantitative easing policy would be helpful.
ECB Governing Council member Erkki Liikanen said last Friday (December 16), the introduction of the common bonds of the euro area approach does not solve the two-year-old debt crisis in Europe. Liikanen said, "First of all, the euro area member governments must work together towards a sustainable fiscal policy forward. Fiscal consolidation must be carried out by the Governments themselves, they must have a convincing restructuring plan in order to restore market confidence in the euro area, and to improve the environment of the region's economic growth performance. "He said," responsibility is the heart of government decision-making and reform. "The ECB's stance is the inflation risks balance, the euro-zone inflationary pressures despite entered the 2012 will face a trend of slowing down. Of course, now does not exist in the risk of deflation.
This week, the fundamentals of most countries will announce interest rate decision, we recommend investors focus on, will the exchange rate affect the trend.