The Focus Is Back To QE &Nbsp; &Nbsp; The Mainstream Currency Plays The Opposite.

The US non farm payrolls data released on Friday were far less than expected. The US dollar suffered a setback and fell below 80 figures, while the euro, which suffered the biggest decline in the previous period, gained 200 basis points on the same day. It can not help but sob whether the fate of the euro and the US dollar is about to change again or not. It is a pity that the US dollar will not be changed until November.

In the past month, the focus of the exchange market has undoubtedly focused on the development of Ireland and Europe's debt crisis. Under the influence of this risk event, the euro slipped by about 7% in November, the worst month since May this year.

Today, the European Union has already set an aid plan for Ireland, which is 85 billion euros in size. The European Central Bank has extended the time of liquidity support measures. The new report on non farm employment may mean a re shift of focus, that is, investors may return to the concerns of the Federal Reserve's quantitative easing measures from the concern of the debt crisis, so that the fate of the euro and the US dollar may be reversed again.

In fact, analysts have already pointed out that the euro will rebound against the US dollar and wait for the focus of the market to return to quantitative easing, because the ECB's policy orientation is obviously different from that of the US easing measures, which is the root cause of the weak US dollar performance.

As analysts have said, QE2 and Ireland's fiscal crisis are like games between mainstream currencies such as the US dollar and the euro. Investors need to make tough decisions about whether to buy dollars or buy euros.

And the "rival play" has not yet come to an end.

At the moment, the argument of QE3 is rising. If the market starts to pay attention to the attitude of the Fed and the performance of the US economy, the dollar may return to the downtrend. But the negative impact of the European sovereign debt crisis on the euro may not be so easy to withdraw from the market. Not only can the United States have QE3, but after Ireland becomes the second Greek, Portugal or Spain may also become the third fallen countries in the euro area.

Although the ECB's attitude is still intended to move towards the direction of liquidity withdrawal, the debt crisis may still be a threat to the euro.

Rating agency Standard & Poor's said last week that it will decide whether to lower Portugal's rating in the next 3 months. Spain has launched a general strike after tightening fiscal policy, and the government has declared a state of emergency in the country.

It is precisely because the European debt crisis is still grim, some agencies predict that the euro may continue to decline.