Bleak prospects for the euro lingering euro fell 1.25 dollars or involvement

 Abstract: The lingering shadow of the debt crisis because of the euro in early 2011, or will face more pressure, the European debt refinancing worries of contagion and may drag on the euro / dollar fell to 1.25.

dragged down by doubts about the euro zone debt, and the euro-zone government bonds auction focused on second-tier country hit, the euro will face more pressure early 2011.

Portugal on Wednesday (12) 10-year Treasury note auction attracted strong demand from overseas investors, but confidence is still not firm. Market is closely scheduled Thursday (13) Spain and Italy held in Treasury auctions, Treasury auctions if the response was flat, or bond yields are particularly high, the euro could fall further.

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defend the euro rallied on the agenda to boost bond issuance by Portugal Bank of Spain topped the unemployment rate in the United States developed open RMB RMB exchange rate foreign exchange transactions to change its lowest level since the euro rescue fund expansion of the European Union urged the [yuan premium] [Quote Center]
some analysts estimate that the euro zone countries in 2011, the maximum size of the total funding will reach 8,600 million euros. Although the scale below the euro-zone countries in 2010, nearly 9,000 million euros in total borrowing, but most of the refinancing plan was placed in the first half of implementation.

analysts said the euro zone rose less the cost of borrowing member countries, and more investors to seek international assistance is expected to be Portugal, and the crisis could spread to Spain, will drag the euro. Most of the weak euro-zone member states to second-line countries of southern Europe. Lack of effective policy response to the debt crisis will only exacerbate the euro's dim prospects.

UBS chief currency strategist Mansoor Mohi-uddin said: large-scale second-tier countries debt refinancing. .

strength of Japan and China, the foreign sovereign investors to buy European bonds on the commitment, may only delay the euro decline.

a survey last week, some large European banks expect euro / dollar fell to 1.23 after 12 months. The euro fell to four-year low of 1.1876 in June, once again reach that level is not impossible.