The Yen And The Euro Will Be Stronger And Stronger.

The yen and the euro were strong as oil prices collapsed and commodity currencies tumbled, providing space for a new round of easing policy in Japan and Europe.

In the past week, the yen rose 0.2% to 116.98, a rise in the third week against the US dollar, compared with the 16 main currencies, and the euro appreciated 1.0916 of its 11 currencies against the US dollar this week.

As the Canadian dollar, the Mexico peso and the New Zealand dollar fell sharply, the US dollar spot index for tracking the US dollar against the 10 major currencies rose by 0.7%.

However, under the impact of global market turbulence and the poor US economic data, the market is right.

Further tightening of the expected slide in monetary policy is undermining the strength of the US dollar's continued strength.

Bloomberg quoted Lee Ferridge, a macroeconomic analyst at Asset Management Co State Street, said that if the yen appreciated by 115 and the euro rose by 1.15, the ECB and the Bank of Japan would re play "loose cards", he said.

Morgan Stanley America

Calvin Tse, the joint head, said that if the euro zone inflation continued to deviate from expectations and the euro continued to rise, the ECB would be more likely than the Bank of Japan to take action. The ECB President Delagi "understood that he needed to take all means" to achieve his goal.

Tse also said that Morgan Stanley believes the yen and euro will further strengthen.

The currency war is still smoky.

If the dollar starts to hit, the European Central Bank and the Bank of Japan will retake action.

Kuroda Higashihiko, governor of the Bank of Japan, also said yesterday that if necessary, Japan

We will not hesitate to step up the stimulus policy.

The ECB's meeting minutes released in December this week showed that some members expressed support for lowering the deposit interest rate by 20 basis points, increasing the intensity of easing measures, and the possibility of increasing the scale of debt purchases.