The Eurozone Temporarily Improved
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Because investors generally expect the Irish Parliament in 2011 through the budget a modest rise in risk appetite on Tuesday, including the euro, Australian dollar, including non-US currencies against the dollar.
Led by non-US currencies the euro overnight, but by the market on the Irish budget will pass the impact of optimistic expectations, get rid of non-US currencies on Tuesday picked up overnight decline, the dollar index fell homeopathy, spot gold record high international oil prices rose to 2-year high.
Nevertheless, the negative comments are still flooding the market, in addition to agencies lowered expectations for the euro, the analysts also pointed out that the latest position report is not conducive to the euro. The latest data show that as of November 30 euros speculative short positions unchanged from last week, which is considered the future the euro may be accelerated under the influence of bad news down the sign, because the existence of a large number of short positions in the euro generally show that most speculation who had bet on the euro, which will inhibit the further decline in the euro.
But the United States may be the size of the 600 billion U.S. dollars continue to buy bonds on the basis of the expected uncertainty in the market is a looming factor. QE3 market is still no lack of discussion, if the foreign exchange markets shift the focus to Federal Reserve policy, the dollar may return to decline. Chapter Asian foreign exchange network analyst David told reporters that he believes the euro in the United States well before the economic data remain strong, because the Fed's easy monetary policy will be the possibility of extension or expansion of the dollar negative.
Reserve Bank of Australia yesterday to keep interest rates unchanged at 4.75%, and after that statement, suggesting the possibility of raising interest rates for some time little prospect of interest rates caused the Australian dollar against the pair, but the benefits of improved risk appetite, the Australian dollar also gained against the U.S. dollar yesterday, dozens of point gains.
Reserve Bank of Australia interest rate decision, as expected, and the RBA believes that the current monetary policy is appropriate, private investment begins to accelerate, inflation will rise in the medium term, and future employment growth is expected to be more moderate.
Outstanding debt crisis in Europe, the U.S. economic recovery and no improvement, and China may further tighten the policy is expected, the commodities and commodity currencies such as the prospect of Australian fear uncertainty. However, David Zhang, told reporters that in addition to the Fed, the European Central Bank to buy its own bonds, which, in effect, and the Fed's easy monetary policy, so in the context of the depreciation of paper money bullish commodities and Australian dollars. |
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By :
Jessie Stone
Submitted
2010-12-12 09:14:55 |
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