It is reported by Masterforex-V Academy that the common European currency is currently rallying against the U.S. Dollar after last week’s bull market, which resulted in a major downtrend, Market Leader reports.
Analysts are expecting a further decline in he market of EURUSD amid the Fed’s forthcoming meeting scheduled for late March as well as the current quantitative easing program unleashed by the European Central Bank.
According to the experts from FX Prime, investors are still covering their short positions on EURUSD and going risk-averse while waiting for the results of the FOMC meeting. It is interesting to note that the common European currency has already lost over 12% of its value against its American counterpart since early 2015. At this point, it is most likely that EUR is going to end this quarter with the most considerable drop against USD it its entire history!
The FOMC meeting is scheduled for March 17th - 18th. The members are expected to abandon the idea to delay the interest rate hikes scheduled form June 2015. If this is the case, the first summer meeting is likely to start with the first interest rate hike in many years.
This means that despite the current recovery, the common European currency is likely to reach parity with the USD Dollar in the near future. Some experts assume that this may well happen in the coming weeks or months if the situation regarding the Fed’s intensions and the ECB’s QE doesn’t change.
