It’s quarter of the year, March 2015, and all forecasts point to possible weakness ahead with the Euro Dollar Exchange Rate with the guys on Barclays, with a possible conversion rate of 1.07. The expectations of the analysts on the big boys from RBS, HSBC, Nomura and Morgan Stanley, are that the euro will actually suffer lows in the following year, or could we say current first quarter?
Going into the facts, the EUR to USD exchange rate at the time of this article was written is 1 EUR = 1.068 and inversely at 0.9382.
Being at it’s lowest of all times!
An air of a fresh kickstarter was felt once the program of sovereign bond buying at the ECB was announced early this year.
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It all seems that most predictions for this year will become real before they were actually expected. Nevertheless, the possibility of an increased recovery on oversold levels, could be the only help to slow down the shared currency’s downward spiral.
Long Term Agenda driven by Draghi
The ECB ( European Central Bank ) just announced that they will be adopting a program of quantitative easing (QE) . The ECB commits on buying €60 billion worth of private as well as public monthly assets.
Hoping that this move will actually boost the inflation close to the European Central Bank’s 2% goal. The program is expected to end by the last days of September 2016.
The table below shows the outlook of the rate exchange for the EUR USD, in which soaked losses clearly show. As we can observe, the worst prediction for the euro dollar rate was at 1.07 by the end of this year was actually accomplished by Barclays.
From what we can see it all looks weak and weaker from here. The media prediction is for a rate of 1.15, to which we still think it’s a bit too optimistic.
A note from Danske Bank quotes:
“There is still a two-speed Eurozone when it comes to their economies, but the problem is that the northern states are now either growing very slowly or stagnating – France is a prime example,”
That includes barely no changes in the employment area and a need for more flexible and reduced costs. We’re just hoping some kind of awakening from the parts involved to see how can they actually rescue the downward spiral of this currency.
• Please notice that all our quoted exchange rates are subject to changes, and may only be good and valid for the moment in which this article was written. If you are using our numbers for international trading, we suggest you would do it using CFD Trading rates as well as their outstanding services and tools, that will provide you with all you need to dominate the Forex market.