Talking in an interview for CNBC a global head of foreign exchange strategy at HSBC David Bloom said that the United Sates will have to follow Europe's economic lead and face up to its debt problems instead of just continuing with quantitative easing that will lead to a dollar decline.

"Europe (is) facing up to its problems, looking into the abyss; the U.S. hasn't even started that process. That will take the dollar into trouble in the second half of next year," Bloom said.

Until the U.S. does begin reigning in its spending, the euro will continue to decline against the dollar from its current "overvalued" state, according to Bloom.

"The euro is under downward pressure, but as we move forward into next year the U.S. is to face up to similar problems to the euro zone," he said.

Fair value for the euro is around $1.25, according to Bloom, who said the panic over the European debt crisis is not reflected in the currency's exchange rate .

At the moment, the U.S. is taking advantage of its position of having the world's reserve currency by continuing to increase fiscal spending, he said.

"They take advantage because they can expand their fiscal policy. If you took a country like Ireland, the UK, they could not dare increase their fiscal side, whereas the U.S. can because it is the reserve currency of the world," Bloom said.

Eventually the U.S. will have to "face up" to its fiscal situation and when it does, that will erode the dollar's value, he added.