We look at two opposite views on where the Euro exchange rate might go in both the short-term and the long-term
The euro is forecast to continue lower, but those looking for fireworks would best be served looking elsewhere it is argued by a number of analysts.
The charts are showing the euro is vulnerable to another sell-off versus the dollar in the coming week, although fundamentally analysts see euro weakness limited, so the main driver could be dollar strength
Scandinavian lender DNB forecast the dollar to strengthen, the euro to fall, the pound to continue its post-Bexit down-trend a little further, Scandi’s to rise and safe-havens to give back their Brexit risk premiums
Following the announcement of Brexit the euro dropped swiftly from EUR/USD 1.14 to 1.09, before recovering towards EUR/USD 1.10.
The euro to dollar rate fell to lows of 1.0913 in overnight trade as the single currency was hit by fears about the outlook for the integrity of the EU following Britain’s decision to vote to leave
If EUR/USD (currently in the 1.1260s) can break clearly above the 50-day moving average (at 1.1300), which is currently preventing any further progress higher, it should gain the necessary momentum to move back up towards the 1.1450's.
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