EURUSD Crash in 2016?

December 2015 might be memorable for the reversal in the euro to dollar exchange rate; it will be remembered as the beginning of a spectacular crash in Euro/USD. As important as the European Central Bank meetings or the Federal Reserve are, they will not matter as much as the cumulative effect on the world economy, the outcomes of such meetings are always the concern of the financial press, yet, the effect does not last long.

Predicting the one year forecast euro/dollar exchange is quite difficult, the global economy has hundreds of moving parts, hence in a continuous motion, thus, making accurate predictions will mean predicting the interactions of these factors across markets.
As a result, analysts propose multiple scenarios for the evolution of a situation; it is more subject to probability, yet, we are in an unusual situation with the Euro/USD where all roads head to the same conclusion.

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Let’s explain this further,
Powerful Forces want a drop in Euro…
We will begin by putting history into a chronological sequence, in the beginning, the euro fell in the weeks before the European Central Bank Meeting, where investors expected the ECB to go all out into the financial market and instigate much monetary actions and instead they lowered the Euro to USD.

However, the monetary action was smaller than anticipated, which forced the euro to edge higher. Investors were way too optimistic about the ECB’S intervention in the markets, though Mario Draghi said he will do anything to save the euro zone.

The ECB president maintained that a lower Euro to USD exchange rate might help to revive the European economy, yet he refused to do it himself. If the ECB wanted to lend vein to its words, monetary action would have had the desired effects, it seemed that maybe Draghi was hoping that the Federal Reserve will raise rates to make European exports more attractive by comparison. Unfortunately despite the Fed raise in interest rates, the Euro/Dollar exchange didn’t move much ,it seemed the investors were holding out for the monetary action they wanted before moving on the Euro.


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