Europe, Japan And Britain Three "Lift Up" The Dollar To Rest Easy?

The European central bank governor Delaki said on Monday that if current efforts are not enough to accelerate the economic recovery in the euro area, the ECB is ready to take further stimulus measures.

The euro is now running above the 1.24 pass against the US dollar. It may be hitting 1.2364 in the past two years and further downward.

Delaki attended the European Parliament's economic and Monetary Affairs Committee's quarterly hearing, staging the above stance, reiterated that the euro was irreversible, and said that the ECB would only buy ABS with guaranteed assets.

Delaki said that if current efforts are not enough to accelerate the economic recovery of the euro area, the ECB is ready to take further stimulus measures.

MarketPulse, a well-known foreign website, said that after the euro / dollar fell below the 1.25 pass, the downward target would see 1.2407 strong support.

Resistance to 1.2577.

The Oversea Chinese Banking Corporation research team expects that the euro / dollar may return to 1.2400., Japan, because of the European Central Bank's readiness to further relax its monetary policy to stimulate economic growth. "The three big news" is announced by Abe.

On Tuesday, the Nikkei 225 index of the Japanese stock market jumped 1.6% on the opening day, as investors waited for prime minister Abe Shinzo to announce a postponement of the consumption tax, early elections and stimulus measures at a news conference today.

Japan's data released yesterday showed that Japan's economy in the third quarter was "in total contraction".

The US dollar is strong against the yen and is expected to hit a new high.

Last week, people familiar with the matter revealed that Andouble was considering postponing the unpopular consumption tax for another 18 months. The original adjustment date was October 2015.

According to sources familiar with the Liberal Democratic Party's election strategy, Andouble may ask for an early election in December 14th.

In a press conference on Tuesday afternoon, Abe will announce the two delay in raising consumption tax and early elections.

Nakano Koichi, a political science professor at Japan's Sophia University, said that the election time was much earlier than everyone expected. Andouble will obviously make an early election decision while postpone the increase of the consumption tax, and the popular support for the unpopular consumption tax will be favorable for the election results.

Matsuno Junyan, chief strategist of Sumitomo Mitsui bank, believes that Japanese stocks fell sharply yesterday and some investors lifted their long positions, so the stock market expected the LDP's strong position to continue after the election results came out.

British inflation figures released on Tuesday will focus on the market. The Bank of England lowered its inflation forecast last week, and investors' expectations that the central bank will not raise interest rates later next year will not get rid of the bad news in recent days.

The pound fell to 1.5592 in the 14 month low on Friday (November 14th) and is now running above 1.56.

The UK's central bank's inflation report said that inflation in the UK could fall below 1% in the next six months, and that inflation will return to 2% in three years.

At the same time, the Bank of England has also lowered its forecast for the growth of the UK economy.

"After the inflation report was released last week, the market postponed expectations for the UK to raise interest rates," said Adam Myers, European head of foreign exchange strategist at Credit Agricole.

Many medium-term investors are still responding to this.

If UK inflation data perform well, this may ease the situation. If the data deteriorate, the market will continue to see the bull's bearish sentiment.

The Bank of England has said that inflation and wage growth in Britain are the key to deciding when to raise interest rates.

Carney, the governor of the Bank of England and Haldane, chief economist of the central bank, expressed concern over Britain's threat of deflation last weekend.

Haldane said he is looking for signs that low inflation expectations are becoming deep-rooted in Britain.

Carney warned that Britain's trading partners and the idle capacity of the job market brought about "huge inflation pressure".

The Federal Reserve will announce the minutes of its October meeting on Wednesday (November 19th), but the market has not reached a consensus on the minutes.

The Bank of Paris, France, supports the US dollar and US debt, and the Agricultural Credit Bank of France believes that the risk that the United States is facing a downward trend of ultra-low inflation will push up the risks faced by the Federal Reserve in the future of monetary policy.

If the record is hawk pie, the US dollar index is expected to measure the 89 pass, otherwise it will fall below the 87 barrier.

The easing expectations of the European Central Bank drove the US dollar to continue to rise.

Although the US economic data released during the day are equally disappointing, it still shows the trend of economic differentiation relative to Japan and the euro area.

It is worth noting, however, that recent economic data seem to imply that the US inflation performance is less than expected in the future. The report released by the Philadelphia fed on Monday showed that economists had lowered the estimated inflation in the coming years.

Economists interviewed now predict that inflation will be lower than the 2% target set by the US Federal Reserve (FED) by at least 2016.

If economists predict, it will create new challenges for the fed to raise short-term interest rates, because inflation may not be able to meet the Fed's expectations.

A report released on Monday by Vasco C C rdia, a senior economist at the San Francisco fed, said that the possibility of inflation below the Fed's target was also higher than that of the target.

Analysts pointed out that the report of the San Francisco fed and the Philadelphia fed highlighted that the United States faced greater risk of low inflation, which could lead to a Fed rate rise later than the market expectations, which is not good news for the US dollar trend.

DailyFX pointed out that if inflation data performance is indeed weakening again, interest rate expectations on the US dollar may also be tested.