More and more experts representing some the most notorious financial institutions in the world like Goldman Sachs and Bank of America confirm their predictions regarding the future of EURUSD. In particular, the expect the U.S. Dollar to reach parity with the common European currency by the end of 2015 despite the fact that USD has been relatively week so far.
The American currency has already lost a bit of its value against the common European currency. This is happening amid an overall weakness in financial markets worldwide triggered by the fear that the existing crisis in China (stock market crash, currency devaluation and economic slowdown) is going to continue since it can affect the entire global economy - from demand for crude oil and commodities to stock market crashes around the globe.
That is why most analysts share the same opinion that the Fed is not going to raise the interest rates in September. As you probably know, expectations of interest rate hikes by the Fed have been one of the key reasons why the U.S. Dollar has already gone up in value by 5,9% since early 2015.
Nevertheless, most of them are still sure that the Fed is going to start raising the rates a little bit later, maybe at the meeting planned for December 2015. At the same time, there are no signals that the ECB is going to cut down on stimulating the Eurozone’s economic sector through QE in the near future. Basically, these are the key reasons why the experts expect the currencies to move closer to parity and finally reach one at some point in late 2015.
According to Masterforex-V Academy, EURUSD has already rallied up to 1,1352, which means that EUR is up by 0,34% against USD.
In the meantime, the experts left their forecast unchanged despite the fact that the chances of the Fed raising the interest rates in September are rather low. For instance, Goldman Sachs predicts that EUR will devalue down to 0,95 cents over the next 12 months. Bank of America still expects the parity by late 2015.
