Euro Ekes Out Gain Against Dollar

Euro is eking out gains against the US dollar today, but many are unsure of how long that will last. With policy divergence becoming a bigger expectation, there is speculation that euro could be at parity with the dollar by the end of the year.

Euro is mostly lower today against its major counterparts, although it has managed to carve out very small returns against the US dollar. Much of that is likely due to profit taking after the greenback’s surge following a favorable jobs report over the weekend.
Many expect that the euro will continue to struggle. The latest information from Mario Draghi and the ECB is that more easing could be on the way. Although there have been improvements in the eurozone economy, they might not be enough to keep policymakers from keeping monetary policy loose.
In the meantime, many expect a Fed rate hike by December, and are even speculating on when a second hike might take place. With this policy divergence, there are some predictions that the euro will be at parity with the dollar by the end of 2015.
At 14:40 GMT EUR/USD is up to 1.0735 from the open at 1.0726. EUR/GBP is down to 0.7112 from the open at 0.7125. EUR/JPY is up to 132.4357 from the open at 132.2100.

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