Robin Winkler and George Saravelos, currency strategists working for Deutsche Bank, expect EURUSD to reach parity this year, Market Leader reports. Longer-term predictions look even gloomier for the common European currency relative to the U.S. Dollar.
In particular,on top of the fact that they predict parity for EURUSd in 2015, the currency exchange rate is going to shift further in 2016 and 2017 down to 90 and 85 U.S. cents per 1 Euro respectively. This is what the experts are expecting to happen in the market of the world’s most popular Forex currency pair.
At the same time Masterforex-V Academy believes that the major reason for this doomsday scenario for the common European currency is an unprecedented flight of capital from the Eurozone.
Yet, the predictions don’t seem unbelievable if to consider the fact that the common European currency keeps on losing its value adjacent the world’s major currency at an unprecedented rate. For now, 1 EUR cost 1,07 USD, which is the lowest rates in many years.
The most terrible thing for Europe as well as its currency and financial system is the high probability that the current flight of capital is very likely to continue in then ear future to reach 4000 billion euros by 2017. By the way, over the last 6 months, the flight of capital reach the point of 300 billion euros, which is quite a lot. With that in mind, the predictions looks pretty probable.
Masterforex-V Academy experts assume that the flight of capital has a lot to do with the negative interest rates coupled with the ECB’s quantitative easing amid the Fed’s intension to start raising its own interest rates after the QE3 in the USA is over. Most of the finds withdrawn form the European economy went to the USA, the UK and Canada.
