Tuesday, 8 November 2011

European debt crisis, the euro continued downward pressure

10 Italian bond yields yesterday hit a new high since the advent of 6.67%, only slightly below the European Central Bank and Greece received the International Monetary Fund assistance to the former to achieve the 7% level. If income is higher than 7%, then the cost of financing will be difficult to sustain.  

European debt crisis dust yet, re-transmission of alarm in Italy, although the euro 7 meeting of finance ministers from the news side optimism, but the continued deterioration of the situation in the euro zone debt, led the market the anxieties, the euro further against the weaker dollar.

The latest data showed the euro zone, 9 retail sales fell 0.7 percent rate, the rate declined by 1.5%. Germany 9, seasonally adjusted industrial output dropped 2.7% rate is expected to decline 0.5%, weakness in the euro zone economic data showed the downside risks are still large, but limited impact on the market. European debt market focus is still on the issue.

Foreign exchange market yesterday, the Italian bond yields soared to unsustainable danger mark, Europe concerns about increasing debt, risk aversion, the euro Xianyihouyang, gold sharply higher. Today, the market will usher in a number of tests, the Italian Parliament will vote on the budget report, while Greece will hold an emergency cabinet meeting, these messages will dominate the market trend direction.

Currency: U.S. Dollar Index on Monday to better overall performance, individual currencies are expressed as follows:

the overall performance, Takami 1.3839, low of 1.3684 . Weak euro-zone retail sales data 9, plus the Italian bond yields rose to its highest level since the euro was launched, triggering market fears, negative euros.

Forecast: euro fell against the U.S. dollar short-term more likely.

increase overall performance, Takami 0.9031, low of 0.8873. Swiss central bank president said that if economic outlook to weaken and the deflation situation requires, the central bank will be ready to take further action to pressure the Swiss franc, Swiss franc weakness.

Forecast: U.S. dollar against the Swiss franc short-term shocks up more likely.

increase overall performance, Takami $ 1,794.90, low of $ 1,751.80. Eurozone debt crisis constantly worried about further deterioration in market trends, risk aversion rapid warming, boost the price of gold buying. Attention to progress in the euro zone debt problems, the price of gold is expected to rise further.