QE3VS European Debt Crisis: Who is the leading foreign exchange market?.

<P> The Fed may start the third round of quantitative easing policy (QE3) and a reverse force in Europe under the debt crisis, currency markets view of reproduction of differences. .</ P> <P> even though the Fed may increase the "spread money" efforts to pressure or let the dollar, the European sovereign debt crisis for some large financial institutions or a substantial reduction of the expected 2011 euro. .But most financial institutions still wait and see attitude towards the euro. .</ P> <P> the euro down against the hard way? .</ P> <P> as at the end of September of the six quarters against the euro, the most accurate financial institutions are expected, Standard Chartered has recently pointed out that the euro against the dollar will continue to decline in mid-2011 to 1.2 below, the expected ranking accuracy .Westpac, Australia's second is that the short-term bearish on the euro, Wells Fargo also ranked third in the euro last week lowered expectations. .</ P> <P> Australia's Westpac senior strategist in London LaurenRosboroug expected the euro against the dollar in the month slipped to 1.265 ~ 1.267 level. .And the bank in Sydney, head of currency research RobertRennie said the Fed's massive quantitative easing monetary policy will impact on the dollar, the euro against the dollar will rebound to 1.35 in March next year and continue to rise in June to 1.38 position. .</ P> <P> European debt crisis has also made the first quarter of next year, Wells Fargo Bank lowered target price of euro against the dollar to 1.37 to 1.38, and November of this year's estimated value is also 1.41. .The line head of FX strategy NickBennenbroek in New York, said the euro against the dollar at the end of next year is expected to continue to decline to 1.25. .</ P> <P> Bennenbroek also believe that the euro is expected mainly due to lower debt crisis in Europe will last much longer. .This year, the euro against the dollar has fallen more than 6%, while last year's decrease of 2.5%. .</ P> <P> but it is worth noting that in addition to the several financial institutions, financial institutions still present, most of the euro on the sidelines, even if the euro up to the November's 6.9% decline, foreign exchange strategist for Bloomberg News .the average expected outcome is still the euro against the dollar in the middle of next year, rising to 1.36. .</ P> <P> who is leading? .</ P> <P> only a month ago, the euro climbed to 1.4282 against the U.S. dollar has also the highest point during the year, when the currency traders at the Fed started the second quantitative easing policy in the context of dumped U.S. dollars; and now, the market is more .concern is that European governments have taken emergency measures to reduce fiscal deficits, economic growth will slow next year in Europe, while some European government officials said the eurozone government bond holders or commitments for future assistance program will be part of the loss caused by, resulting .Investors shunned bonds. .</ P> <P> debt crisis erupted again in Europe has led to Spain and Italy compared with benchmark German bond yields spreads climbed to the highest since the birth of the euro in 1999, while the European Central Bank last week announced the extension of the full allocation for the Bank .the supply of liquidity to the first quarter of 2011, and accelerated the process of buying euro-zone government bonds. .</ P> <P> Standard Chartered in Singapore, said the global head of currency research CallumHenderson, Ireland, Portugal, Spain and other European countries will continue to sovereign debt problems, the fundamental problem is that these countries have huge debt, huge budget deficits and large current .account deficit, so there is no own funds, can not cut interest rates to solve the problem, so the only way to have only experienced a serious economic recession. .</ P> <P> the EU in the latest data released by the end of November 2010, Ireland's budget deficit will account for 32% of GDP, the proportion is far more than Greece, the Spanish government's budget deficit this year will account for .9.3% of GDP. .</ P> <P> BNP Paribas senior foreign exchange strategist IanStannard also believe that debt with the highest rate of the euro zone countries have to reduce the deficit, the region will need a weak euro to help support economic recovery, it is expected that in the euro against the dollar .continue to fall next year to 1.25, and the end of the third quarter of next year, continued to decline to 1.2 position. .</ P> <P> the world's largest currency hedge fund FXConceptsLLC President JohnTaylor recently pointed out that solving the debt problem in Europe will take "a long way to go", which means that the market will continue to be shocks. .Taylor is also expected that some countries might leave the euro zone, while Spain and Italy may be the risk of a sovereign debt issue will make the Euro is very weak. .</ P> <P> BBVA emerging market analysts told this reporter that the bond purchase plan and other measures of the effect of monetary expansion is only to resolve the debt crisis in Europe for more time. .From the source of the problem only through the establishment of a permanent mechanism for debt restructuring in order to achieve the debt crisis of the future European permanent settlement, which will ease the current tension in the market to provide the necessary credibility. .</ P>.