In the past two months, the euro has performed very well against the US dollar, up from its lowest level at 1.31 and record highest Seyoum at 1.3825. This was up by 5.5% due to weak demand for dollars albamriki but after this rise, many investors wonder about the height at which the progress of the euro. First and foremost, you must understand that trends in the currency market may last longer than many people expect, but in the case of EUR/USD, there are many factors that may limit the upside of the euro/US dollar, including the transformation of economic data. However, the main factor behind the likely price of the EUR/USD is the criticism of the European Central Bank. In February, after the EUR/USD at its highest at 1.37, maraio Draghi, Governor of the European Central Bank the euro sign of confidence but warned that exchange rate appreciation was reflected on the economic factors, saying that the real exchange rate and nominal euro near the long-term average, but that the continued rise of the euro, the Bank has changed its look to price stability. When these comments were issued, trading the EUR/USD below the 1.36, suggesting that the Bank feels comfortable trading the EUR/USD around 1.37. However, trading is located at 1.38 and haven't heard any complaints from the European Central Bank and why we think it is the beginning of the European Central Bank concern the euro will be at the 1.40. The EUR/USD rose by 2 cents, the European Central Bank starts in statements pushing the pair down, this will be a very strong incentive for investors to stop buying the euro.
We must not forget at the European Central Bank keeps its inclination to the soft monetary policy has recently discussed the possibility that there is another application for LTRO or negative interest rates. The strength of the currency because of narrow economic conditions, raising the level of unease within the European Central Bank. We do not believe that cyclists will hesitate to intervene verbally in the EUR/USD to the level of 1.40 and up aliorob to this level because investors want to diversify their investments with us before February. At the same time, it is important to remember that in the alozet where the US dollar weakness because of the postponement of the Fed's decision to reduce purchases of assets, the Bank canceled the idea completely. When us data is improving, the market reassessed the chances of reducing purchases of assets, leading to the recovery of the US dollar and a shift towards the euro.
In another report on our Forex blog will give you a result German IFO's weaker Outlook and its impact on the euro and the trend of the euro during trading today.
