The beginning of the week may turn out to be good for the European currency, experts say. The long global hegemony of the dollar, that is, its superiority in the financial markets, does not allow the euro to turn around, but it does not lose hope of winning back. According to analysts, a single currency has a chance of success.
The fact that on Monday, February 17, the US market will be “thin” and working in a reduced mode can play into the hands of the euro. This is due to the Presidential Day in the United States, which is considered an official weekend. Therefore, experts emphasized that a single currency has a chance to prove itself.
Last week, the euro lost to the greenback on all fronts. The single currency declined endlessly, periodically trying to reach the bottom. Last Friday, February 14, the EUR / USD pair was trading within 1.0835–1.0836 and sometimes dropping slightly lower.
At a certain point, the pair reached its minimum values in the range of 1.0828–1.0830 recorded in May 2017. Since the beginning of this year, the euro has lost 3.2% against the dollar.
On Monday morning, the EUR / USD pair was trading near Friday marks of 1.0837–1.0838. Currently, the tandem seeks to catch up, but these attempts have so far failed.
Nevertheless, analysts remain optimistic about the European currency. The forecast of currency strategists by ABN Amro announced the restoration of the euro in the second half of 2020. Experts are sure that, having reached the bottom of the price, the euro will pick up fast and “jump” to 1.1600 by the end of the year.
Analysts at Bank of America agree with ABN Amro experts and believe that during the first quarter of 2020, the weakness of the euro will continue, and then there will be a breakthrough. Most likely, it will be due to a small rollback of the dollar and a gradual improvement in economic data for the eurozone. According to the bank, we can expect the growth of the euro to 1.1500 by the end of this year.
In the long run, most experts are positive about the single currency, which cannot be said about the short-term forecast. In the near future, the euro will have to forget about leadership and throw all his strength into maintaining current positions and possible advancement to the next peaks, analysts summarize. However, this prospect does not scare the euro, which more than once had to do the same in this tandem, competing with the US currency.
The material has been provided by InstaForex Company – www.instaforex.com
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