Looking At the EUR/USD

EURUSD

In terms of the fundamental analysis, regarding EURUSD a very paradoxical situation has taken appears – Neither the EU, and neither the US want a strong national currency. The US will do everything they can to give a possibility to raise the refinancing rate (raise the rate = start of deflation process (inflation slows)), while strengthening of currency prevents this.

In the eurozone, a different situation – inflation is on minimum levels, European Central Bank does everything to speed it up, while strong currency only interferes with it.

Considering this, lately the ECB and Federal reserve representatives have been speculating on how to decrease the currency rate.


Leave a Reply

Your email address will not be published. Required fields are marked *