Euro is still losing ground after yesterday’s ECB meeting. And now, some analysts say that the euro could end up in parity with the US dollar by the end of the year.
Yesterday’s ECB meeting brought out comments from Mario Draghi to the effect that the central bank is willing to do what it takes in an effort to stimulate the eurozone economy. The remarks from policymakers are encouraging the idea that if the ECB doesn’t increase its quantitative easing, it will at least extend it beyond the original expectation of September 2016.
Now, some Forex traders and analysts think that there is a real chance for parity with the US dollar if the Federal Reserve actually raises its interest rate by the end of the year. Both the ECB and the Federal Reserve will be evaluating policy in December, and some think that this could lead to a “perfect storm” for the EUR/USD pair. For now, though, the euro just continues to lose ground against its major counterparts and other currencies.
At 13:40 GMT EUR/USD is lower, heading down to 1.1049 from the open at 1.1109. EUR/GBP is also lower, dropping to 0.7198 from the open at 0.7216. EUR/JPY is heading down to 133.6320 from the open at 134.0740.
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