Greece and other countries through the recent successful auction of Treasury financing

recent international foreign exchange market the euro, the strength of the dollar exchange occurred. As of July 16, the euro climbed to a two-month high against the U.S. dollar index Zeyi 82.08 hit a new low since May 4. Analysts pointed out that with U.S. and European economies and the shift in the fundamentals of debt crisis in Europe further weakened the economic fundamentals or factors will beat hedge, and lead to the next dollar further down.

market worried about downside risks

debt crisis in Europe further weakening of economic fundamentals is the focus of the market and beat risk aversion, as the foreign exchange market and the main factors. The recent data show that the United States and Europe's economic fundamentals are taking place in the shift-style changes.

Greece and other countries through the recent successful auction of Treasury financing, the financial crisis show that concern over the euro zone sentiment to some extent been eased, the European debt crisis is slowly weakening. Only from last week's run, July 13, although Moody's would be Portugal's sovereign rating from Aa2 to lower levels A1, but Greece still shoot another successful day of a short-term bonds. Sum total of 1.636 billion euros debt for a period of 26 weeks, the interest rate up to 4.65%, bid the total amount of funds available for the actual 3.64-fold. July 15, Spain with the highest successful bid price is 30 million euros, 15-year bonds, interest rate is 5.116%. In addition, Portugal and other countries also announced a successful auction.

debt crisis of the weakening of Europe is undoubtedly subject to its frequency to the April strike since the euro constitutes a positive. Market participants believe that the bond tender award sought after, that some investors valued the high euro-zone bond yields, are willing to take greater risks, not even rule out the part of investors in the euro experienced a more than six months after the crash after a continuous Admission to the possibility of gradually bargain-hunting.

data to the European economy is not good and then continue to deteriorate. Such as the euro-zone PMI index for 8 months in more than 50; May Producer Price Index (PPI) annual rate of 3.1%. By the end of June, the European Central Bank to the euro zone banks ? 131 900 000 000 loans totaling less than expected, indicating that the credit market order and better than expected. At the end of June of the G20 summit, Germany to exceed market expectations of a rare hard-line stance, made out of fiscal and monetary stimulus position, showing their confidence in their economic upturn and Europe.

the United States is not optimistic. Last week, more than a year for the first time the Fed lowered its U.S. economic growth forecast: GDP growth forecast of 3.2% from the spring down to 3.0% -3.7% -3.5% of GDP in 2011 growth forecast from 3.4% -4.5% change 3.5% -4.2%; year, the unemployment rate expected by the April forecast of 9.1% -9.5% 9.2% -9.5% rise. The data also show that in June this year, U.S. non-farm sector added 125,000 jobs fell for the 6 conditions and their overall; the United States in May of international goods and services trade deficit widened 4.8% to 42.27 billion U.S. dollars, for 2008 November has been the largest; the United States in June CPI annual rate of 1.1%, the third consecutive decline in 3 months; May business inventories rose 0.1% in the ring, commercial sales, decreased by 0.94%.

national securities analysts, according to current trends, wholesalers and retailers will be around the next one-quarter to reduce inventory. This means that stocks will round up to terminate the third quarter of this year, also means that 34-quarter GDP growth rate of inventory changes on the contribution will not be as expected.

weak market outlook, U.S. dollar die hard

fundamentals of growth in two European debt crisis coupled with a weakening of the euro and the dollar took place nearly a month since the strength of the trend of exchange. Analysts expected future economic fundamentals or factors will beat hedge, the dollar further down.

Nomura Securities analysts said, because in recent weeks, significant deterioration in U.S. economic growth prospects, from past standards, the market has already accumulated too long dollar positions, prospects for 2010 dollars Xia Bannian \U.S. dollar is expected to be weeks or months to go soft again.

In fact, in December last year, started from the strong appreciation of the dollar up to six months old, the appropriate adjustments in line with U.S. demand. First half of the strong dollar contributed to the United States issuing bonds, but the continued weakness in economic data, inflation indicators remain low in the background, the U.S. Treasury yields continue down the current 10-year Treasury yield to maturity rate below 3% the lowest level this year. Issuance of treasury bonds issue has no need to worry, but rather trade deficit and employment issues must be resolved.

Foreign Trade University,Jilin University at 19, said Ding Zhijie, Dean of Finance, a strong dollar on the U.S. trade competitiveness and domestic employment have a negative impact. Dollar trade deficit, the recent high, non-farm employment decreased new, this is the beginning of Obama's \Therefore, the U.S. dollar has also happy to see periodic depreciation. (Reporter Ge Chunhui)