QE Is About To Launch &Nbsp; The Dollar Will Fall Further Against The Euro On Tuesday.

On Tuesday morning, Beijing time, the Australian central bank announced an unexpected increase in interest rates on Tuesday. The US dollar suffered the first blow, and with the possible new round of the Fed. Monetary easing policy The introduction of US dollar versus Euro And other major currencies remain under constant pressure. Downtrend 。

The US mid-term elections are scheduled for Tuesday. The results of this round of voting may change the control of both houses of Congress and believe that the trend of the US dollar exchange rate will be affected in a short and long term. At the same time, analysts pointed out that once the Federal Reserve's decision is officially announced, the sovereign debt crisis in Europe is likely to ferment again.

At the close of the foreign exchange market, the US dollar index for tracking six major currencies was 76.75 points, or 0.71%. The euro closed against the US dollar at 1.4025 US dollars, or 0.94%, while the US dollar traded at 80.81 yen, up 0.24%, and the US dollar against the US dollar at 1.6009 US dollars, down 0.21%.

Although the US midterm elections on Tuesday had an impact on the US dollar trend, market analysts still believe that the intensity of quantitative easing measures in the Fed's plan is always the biggest factor affecting the US dollar exchange rate. One analyst also said that any doubts about the Fed's statement on Wednesday would lead traders to leave risky assets such as stocks, thereby supporting the US dollar.

Greg Anderson, a senior foreign currency analyst at Citigroup, believes that "mid-term elections have potential for short-term, medium-term, and even long-term impact on the US dollar exchange rate trend." He also pointed out that the issue of whether or not to extend a wide range of tax cuts has not been solved for a long time, and that this uncertainty factor may be maintained until next year when the newly elected member takes office. "If the result of the election ends this tax cut, the economic instability between December and January will become more serious.

On the side of the Fed's quantitative easing measures, although the market has little doubt about the measures the Fed will take, there are still different views on the scale of the project. According to Tuesday's report, Citigroup analysts estimate the size of the new bond purchase project, which will be between 400 billion and 600 billion dollars in the coming months.

Quantitative easing usually means increasing the money supply to the financial system to encourage borrowing and spending. But such measures also mean a decline in the value of the US dollar. The valuation of the US dollar has fallen by 2.7% since the end of September, and the main driving force is the market expectation. Some analysts pointed out that after the announcement of the Fed's decision, the euro is not necessarily the biggest beneficiary. The euro is still under considerable pressure due to Europe's sovereign debt problems and the continued decline in Irish and Portuguese bond prices.

In a customer report on Tuesday, Commerzbank analysts pointed out that "if the QE measures are inadequate and the Fed does not have any new supernormal monetary policy to shake the market, the negative factors against the euro may emerge again after a few months of silence." The report estimates that the euro will fall below the US $1.35 mark by the end of this year.

During the Asian trading session on Tuesday, the Bank of Australia unexpectedly raised interest rates by 0.25% to 4.75%. Australian dollar jumped 1.21% on the day, closing at 99.89 cents, a 1.0023 dollar intraday, the highest level in 27 years. In a statement on Tuesday, the Australian central bank pointed out that the new interest rate "reflects the high level of commodity futures prices and represents our anticipation of monetary policy in Australia and several major economies. The new interest rate will help us to control inflation pressure as a whole. "