Historically low record of frequent refresh the euro against the dollar within reach 1:1.

<P> Constantly refresh the record of historic lows, the euro does not seem to have become weary of the matter. .Just a few months ago, when the euro against the dollar, people will still question the predictions are 1:1, even many feel that this forecast "crazy and absurd"; However now, the euro has always been the doldrums, more than the decline had .more and more people believe the euro against the dollar 1:1 is just around the corner. .</ P> <P> euro low continuously </ P> <P> 6 1 March, despite the late New York trading the euro closed at 1.2253 against the dollar, slightly lower than the previous trading day; However, the intraday euro against the dollar .fell to 1.2111, the lowest level in four years once again refreshed. .Yet more than half of 2010, the euro depreciated against the U.S. dollar rate of nearly 20%, only to fall 7% in May, the birth of the euro has hit the longest a 11-year decline since the market. .</ P> <P> "There is no doubt that the euro will remain in June fell channel." A securities analyst said, "The euro has fallen below 1.2300 against the dollar in nearly two weeks, .the euro against the dollar is likely to continue to fall below 1.2100,1.2000. However, within the past two months, more than in the euro against the dollar will fluctuate between 1.2300-1.2100, while in the 1.2000 mark to a certain integer support. "</ P .> <P> 5 31, the ECB said in a report within the next 18 months, euro area banks by the financial crisis of the second round of credit losses may reach 195 billion euros, if the sovereign debt crisis and the austerity program hindered States .economic growth, total losses will be higher than expected. .Eurozone banks face writedowns will peak this year, 2011 will remain high. .This assertion became the European Central Bank on June 1 New York trading, the euro fell the main promoter of pressure. .</ P> <P> "U.S. non-farm payrolls data will be released June 4 local time, and how good or bad the data will largely determine whether the euro fell below 1.2100 against the dollar mark." The .Analysts pointed out. .</ P> <P> banks worse </ P> <P> "strong support for the euro has no factors, any slightly bad news is enough to stimulate the continuous depreciation of the euro, the euro has been empty long term, and now no one wants to .holding the euro. "the analyst pointed out that" market sentiment has been so difficult to change, but also constitutes a major negative factor in the euro. "</ P> <P> Nomura Holdings announced data show that the first quarter of 2010 .Eurozone fixed income markets net outflow of funds of 105 billion euros, the euro assets that the market has undergone major changes in the preferences. .The company's general manager of currency research in New York said Jens Nordvig, very obviously, part of the central bank has slowed the pace of buying euro assets, virtually all of the uncertainty for other countries to accelerate the pace of withdrawal of the euro zone's asset allocation. .Bank of New York Mellon Samarjit Shankar, general manager of foreign exchange transactions, said the euro's prospects dim increasingly clear, at present there is evidence that central bankers and managers are trying to reserve holdings of euros. .</ P> <P> "the sovereignty of Greece and other countries in addition to the debt crisis, the Spanish banking sector has been the recent deterioration of the euro has become the greatest threat." The analyst pointed out that "before the Bank of Spain took over the savings bank Cajasur after .European banks to tighten monetary conditions to occur, the London inter-bank dollar lending rates soared, the banks appear the phenomenon of hoarding dollars. And yesterday, the second largest savings bank, Spain - Madrid, the Spanish savings bank will apply for government-funded news and more .making the market concerns about the European banking sector sentiment. "The analysts believe that once the European banking sector has deteriorated against the euro would be fatal. .</ P> <P> weak trend is hard to change </ P> <P> chief Asia economist at BNP Paribas, said Richard lley, the current European banking industry has been sounding the orange alert, the situation is really worse if the banking industry, then even the current .The best economic development in Asia will be affected. .He also expects the euro-dollar exchange rate the occasion of the first half of next year will reach the level of 1:1. .</ P> <P> Fudan University, Hua Min, director of the World Economic Research Institute said: "The continuous depreciation of the euro and the European governments to reduce budget deficits and tax increases and other measures taken, will inevitably lead to the deterioration of the investment environment in Europe, will .more and more foreign investors dumped the euro after the divestment. "Currently, both the investors withdrew from the European capital markets, or from the divestment of the real economy in Europe, mean that the euro will be a lot of selling, the euro prospects .. .</ P> <P> Richard lley further said that the weakness of the euro is bound to continue in the coming years, because many challenges still facing the euro zone. ."On the one hand, the next few years the euro area and the whole of Europe must adopt a generous fiscal austerity measures to reduce the budget deficit, and this process will be 'painful', and drag on GDP growth, we can not identify those highly indebted countries .can persist in the end of fiscal austerity measures; the other hand, the cohesion within the euro zone is being challenged, so the former German ban on naked short selling to take unilateral measures, which will also impact on the euro. "</ P>.