18 Dec 2014
EUR/USD downside fully exposed
FXStreet (Guatemala) - EUR/USD is trading at 1.2274, down -0.55% on the day, having posted a daily high at 1.2353 and low at 1.2266. EUR/USD is building a strong downward case and moving away from the sideways existence of recent times.
As with many other currencies, the greenback is taking the lead as the divergences between global central banks becomes solidified in yesterday's FOMC while markets anticipate a move after the first quarter of next year and in contrast to the ECB, they are about to head towards further and more aggressive monetary easing from early next year.
Moreover, as a collective of analysts at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained, recent developments in Russia which is now experiencing a full-blown currency crisis are also likely to reinforce the widening economic divergence between the euro-zone and US.
“A deeper economic contraction in Russia will lead to more material negative spill-over effects for the euro-zone economy dampening the already weak growth outlook…EUR/USD is expected to fall to 1.1800”.
As with many other currencies, the greenback is taking the lead as the divergences between global central banks becomes solidified in yesterday's FOMC while markets anticipate a move after the first quarter of next year and in contrast to the ECB, they are about to head towards further and more aggressive monetary easing from early next year.
Moreover, as a collective of analysts at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained, recent developments in Russia which is now experiencing a full-blown currency crisis are also likely to reinforce the widening economic divergence between the euro-zone and US.
“A deeper economic contraction in Russia will lead to more material negative spill-over effects for the euro-zone economy dampening the already weak growth outlook…EUR/USD is expected to fall to 1.1800”.