Fundamentals Or Push The US Dollar Trend Stronger &Nbsp; &Nbsp; 80 Strong Finishing Last Week.

Last week,

Last week, the dollar first suppressed and then raised.

In December 13th, on the eve of the Fed's Conference on interest rates, the US dollar index broke 80 points rapidly, with a single day drop of nearly 1%.

On the 14 day, the Federal Reserve held a regular monetary policy conference and issued a policy statement after the meeting.

Compared with the November statement of interest, apart from further expressing dissatisfaction with the speed of economic recovery and the change of unemployment rate, the content of the statement can hardly be found fresh.

After cutting or expanding the expectations of QE2, the dollar index quickly went out of the turmoil of the early week and returned to the top of the 80 point barrier, and has since been in the narrow area near the 80 point.

For now, looking forward to its "premature death" or launching an upgraded version of QE3 seems to be unrealistic after the QE2 full moon.

Analysts said that although expected to cause short-term fluctuations in the US dollar, from the unexpected trend of the US dollar index after the advent of QE2, we can see that the sensitivity of the US dollar to monetary policy is decreasing.

At this point,

In fact, since October, the US employment has improved significantly and the actual consumption expenditure has increased steadily. The key economic indicators show positive changes, which seems to indicate that the two US economic bottom is in the past.

Guoxin Securities estimates that the US economy will be up in season in 2011.

At the same time, the negative impact of the 2011 debt crisis on the economic growth of European countries will continue.

The economic fundamentals of the developed countries will show the pattern of "strong US and strong Europe" in 2011.

In view of the optimistic judgment of the US economic fundamentals, Guoxin Securities believes that in 2011 the Fed faced more options to tighten liquidity or reduce the scale of the QE2 easing plan instead of further increasing the scale of easing.

Once the Fed's Monetary Conference statement is optimistic about the fundamentals of the economy or the outlook for inflation, the US dollar index will face a trend reversal.

US dollar index