Analysts of the American investment bank JPMorgan Chase said they believe in improving the dynamics of the single European currency against the dollar.
According to them, this will happen only next year, but for now, investors should be prepared for the fact that, together with the dollar, the euro will still update the minimums.
"Eurozone GDP growth slowed down somewhat, and political perturbations and disagreements among members of the euro area were in the center of attention. Under these conditions, the depreciation of the European currency against the dollar can continue, up to the level of $ 1.13 per euro by the end of the year," representatives of the financial institute noted.
"Meanwhile, next year, we are waiting for the recovery of the EUR / USD pair to the level of 1.19. We believe that strengthening the euro position will be helped by narrowing the gap between economic growth rates in the eurozone and the US, as well as a possible change in the percentage differential as the Fed approaches the end of the monetary tightening cycle, and the ECB finally starts to take such steps." They added.
Canadian Imperial Bank of Commerce (CIBC) experts adhere to a similar point of view.
"The fall of the euro against the dollar is likely to continue until the ECB raises interest rates. However, the regulator is unlikely to start tightening monetary policy until the market gets used to the end of quantitative easing and the basic CPI does not rise higher," experts say.
The material has been provided by InstaForex Company -
www.instaforex.com