EURUSD
 
1.06159/ 1.06159
GBPUSD
 
1.25261/ 1.25271
USDJPY
 
114.060/ 114.060
USDCHF
 
1.01529/ 1.01539
AUDUSD
 
0.74168/ 0.74168
USDCAD
 
1.33871/ 1.33871
NZDUSD
 
0.70969/ 0.70979
EURGBP
 
0.84748/ 0.84748

The EUR Is About To Drop- And Here’s Why

The Euro is about to drop against other major currencies, such as the USD, JPY and GBP. EUR has performed well as a safe haven, along with the JPY, as it has become the low inflation currency of choice for investors looking to safeguard their wealth.

However, this demand for the Euro may reduce quite significantly over the next few weeks. After ECB President Mario Draghi’s speech on the interest rate decision last Thursday, more information has been released through the ECB meeting’s minutes, that the EU will recommence Quantative Easing (QE) in the near future. The central bankers are simply unsure as to how to make their expansionary monetary policy effective, as GDP growth, along with price inflation, has remained stagnant in the economic bloc.

These sentiments do little to dissuade investor’s lack of confidence in the European Central Bank. Coupled with the expansionary policy, we should see the Euro decrease in value against the other major currencies. Keep an eye out for the type of monetary policy implemented by Draghi, and how it could affect your currency holdings.

Noel

Noel is a student of Finance at Queen's University Belfast in Northern Ireland. He has several years' experience in sales and servicing roles, including Lloyd's Banking Group. He hails from the green isles of Ireland, and is using his free time from studying to work in Beijing for the MexGroup.

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