EUR/USD Forecast, Technical Analysis, Outlook ► preview of the main events that move Euro to Dollar during the week. Here is some general information. Scroll down for the latest EUR/USD forecast.
Euro/dollar is the world’s most popular currency pair for both institutional and retail traders. The euro is the single currency of 19 European countries that often differ from each other. The US dollar is the reserve currency of the world.
Germany’s high trade surplus means that money is flowing into the euro area. When there is no excessive speculation, this influx pushes the common currency higher. However, the euro area has its share of economic and political issues.
The euro debt crisis engulfed Greece, Portugal, Ireland, Italy, and Spain. While the worst may be behind us, it is always looming. Thanks to the leadership of the European Central Bank and President Mario Draghi, the project survived. The diverse countries are linked by a monetary union but not a fiscal one, and this remains the Achilles heel.
EUR//USD trading is often choppy, especially when it is confined to narrow ranges. When the pair is in trend, past technical lines, even those from 2003, are respected quite nicely.
EUR/USD recent moves
After Brexit, many feared that other European countries would leave. The rise of populists, especially in France, keeps the euro down. On the other hand, the ECB will probably end the massive bond-buying scheme. In April, they will reduce the volume from 80 to 60 billion euros. According to reports, the Frankfurt-based institution could lift the negative deposit rate before ending QE. The ECB has pushed the euro higher with the hawkish tilt.
The dollar previously enjoyed hopes for fiscal stimulus from the Trump administration. Also, the upbeat sentiment from the Federal Reserve also underpinned the dollar. Both have changed with Trump’s failure to pass any health-care reform and the “dovish hike” from the Fed.
So, fewer people now expect EUR/USD parity.