The Christmas Holidays In Europe And The United States Are Approaching &Nbsp, And The Market Is Lighter.

scale

And the news of the death of Kim Jong-il, the supreme leader of the DPRK, aggravated the geopolitical prospect of the Korean Peninsula. The bad news led the market to encourage investors to continue to escape high-yield assets such as the euro and buy dollars to avoid risks.

However, near the Christmas and New Year holidays, the decline in market trading has depressed the fluctuation of the exchange rate, and the non US currency has basically extended the recent low level consolidation pattern on the technical side.

At yesterday's EU financial conference call, euro zone finance ministers agreed to provide 150 billion euros of loans to the International Monetary Fund (IMF), lower than the target of 200 billion euros at the EU summit in December 9th. Non euro zone countries such as Czech, Poland and Sweden agreed to invest, but the British said they needed to make further funding decisions within the framework of G20 early next year.

Due to early optimism that the conference is expected to expand aid funds, the result is obviously unsatisfactory. Last week, bond yields in Italy and Spain continued to climb to historic highs. The 150 billion euros in aid funds may be a drop in the bucket.

At the same time, the European Central Bank President Delagi said at the meeting that fiscal tightening measures may be accompanied by the risk of short-term recession in the euro area economy. Although the market still hoped that the European Central Bank could make a difference in the rescue of the market, Delagi again refused to expand the scale of the purchase of debt, and it also suppressed market sentiment.

After the announcement of the finance ministers' meeting, US stocks fell at a low level and the euro / dollar also fell below 1.30.

In the short term, seasonally adjusted effects of holidays may provide opportunities for consolidation or rebound correction for non US currencies.

At the end of the year, the risk of further deterioration of the European debt crisis and the global economic slowdown slowed down, and the probability of rating agencies cutting down the sovereign ratings of the big powers in the euro area decreased. The economic data of all countries were light and the focus of investors shifted to holidays. The above factors are expected to provide room for the correction of the non US currency correction in the short term.

However, with the gradual recovery of the US economy and the expected cooling of the QE3, the US dollar is expected to continue to be the preferred hedge and reserve currency for investors in the context of the ongoing European debt crisis.

A number of German consumer confidence, IFO business index, Canada's November CPI and us new housing starts and construction permits data will be released within the next day. The performance of the stock market after the data is concerned will give more guidance to the market.