Economic recovery is different dollar will continue to rise

June 8th, the euro, the dollar will rebound consecutive continuously callback, euro debt crisis seems to have become more powerful. However, analysts said that the financial market turmoil caused by the strong differentiation of the real economy to global exchange system have a far-reaching impact, a strong dollar, weak euro pattern also difficult to change.

臻 Hao wealth of analysts believe that continuous rise of 6 months laid the dollar long cycle to good foundation, short-term technical withdraw from 88.71-89.62 interval pressure. Analysts said the market for the euro area of sovereign debt crises of discreet emotional relief, and the United States economy to recover from the recent trend of the dollar worries go attacking, early-stage high-rise from this round of digestion, later efforts can be more US dollars upwards. While the euro at the end of the rally of wave cycle, the dollar in order to reflect the long-term value.

Galaxy securities that, from a fundamental perspective, because the United States economic recovery is faster than the euro area, as well as market sentiment has been reversed, the dollar will continue to rise, the index is expected to rise to 96.

Galaxy securities, on the one hand, the United States economy accelerated recovery, this year is expected to grow 3% of GDP. Consumption in the United States economy is in a central position, after two years of consumer deleveraging, the current United States family balance levels have returned to normal levels. From consumer credit and consumer confidence, consumption started to restore growth. Improved employment, industrial production stable acceleration pick-up, real estate suggests that the economy is recovering. PMI index is back to 2007, the level of economic growth, the OECD leading indicator also shows that the future economy is accelerated, from these leading indicators and the GDP growth rate of the historical relations between the United States GDP this year is expected to achieve the growth rate of around 3%.

On the other hand, the euro area to economic shocks in the debt crisis, will remain under 1% of slow growth. Galaxy securities considered that Greece's debt crisis exposed structural problems of the euro, due to the sensitivity of the transfer of sovereignty, euro Central Bank cannot implement rapid and effective monetary policy. From euro debt problems of economic worries, euro area consumer and business confidence weakening economic climate index, the unemployment rate continued to rise. But the euro area economy is still in recovery. Leading economic indicators portend continued expansion, industrial production is being recovered, industrial orders increase, indicating that the economy is recovering. Finally, the euro exchange rate and trade have close contact with the sharp devaluation of the euro, the euro area trade is improving. However, the overall United States economy is clearly better than the euro area.