Euro Fell 3.3%&Nbsp In The First Week Of The New Year, And The European Debt Crisis Will Escalate.

As the market fears that a new round of credit rating downgrades will be launched in Europe, the euro has fallen by over 3.3% against the US dollar in the first week of the new year, and has fallen to its lowest level in nearly four months. After the fall of the 1.3 pass, it was directly probing into 1.29.

This week, euro zone countries such as Spain, Portugal and Italy will issue new bonds. The rising cost of financing will add to the fragile financial situation of these peripheral countries.

The Reuters article predicts that it will become more and more intense. European debt crisis The euro will continue to bear pressure, and the euro will continue to be difficult for the coming week. Unless the US economic data is bad this week, the euro will fall to $1.2850.

European Central Bank President Jean Claude Trichet warned 7 euro zone member states not to attempt to rely on the European Central Bank to get out of the debt dilemma and urged them to tighten fiscal rules tighter. At the same time, the market also reported that the Swiss central bank no longer accepted the Portuguese government bonds as collateral. Although the SNB later clarified that Portugal had not been included in the collateral list, the market's worries about further downgrading of the credit rating of some countries in the euro area had not been eliminated. European debt has been heavily sold, and Portugal's and Belgium's peripheral C D S and bond yields have risen sharply. The euro also dropped four trading days against the US dollar last week, the highest of which fell from 1.34 to 1.2907 on Friday, the lowest since last September 14th.

It is understood that Germany, Holland, Italy, Spain and Portugal will sell 20 billion to 22 billion euros of bonds this week. Analysts point out that this scale will be the first real test of how the market digested the eurozone peripheral debt supply this year. They also believe that the interest spreads on the German benchmark treasury bonds in Portugal and Italy and other high deficit countries increased significantly last week, and that the cost of insurance for euro zone debt default has risen sharply. These have clearly indicated that the market has become increasingly uneasy about the debt issuance prospects of these peripheral countries. If the demand for debt issuance in Spain and other countries is low, or the winning rate is too high, the financing problem will continue to be the focus and disturb the turmoil. credit The market has led to further escalation of the European debt crisis.

Schroder investment company economic analysis The division believes that the European sovereign debt crisis will be reproduced by Portugal's need for assistance. According to a survey conducted by foreign media, most analysts believe Portugal had a 65% chance of downgrading before the end of the first quarter. The country will need to accept EU led aid, and a few analysts believe Spain needs assistance too. German Spiegel Weekly has revealed that Germany and France also want Portugal to accept international bailouts as soon as possible to avoid crisis spreading.

The US C (CMA) recently published the C D S pricing data, and more than half of the 10 countries with the highest risk came from Europe. Greece has become the world's most risky borrower in the fourth quarter of last year, ranking more than Venezuela. At the same time, Spain, Portugal and Ireland are also at higher risk than Iraq.