Eur/Usd end second straight year with significant losses

A 10% loss was recorded by the euro against the Us Dollar in 2015, while it also recorded a 12% loss last year. It fell modestly in this last day trading of the year, trading slightly below 1.0900 a far cry from 2015 low of under 1.0500.

The divergence of the monetary policy weighed on EUR/USD. By raising rates in December, the Federal Reserve had begun the normalization process of monetary policy, while the European Central Bank publicized several stimulus measures.

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The break of a long-term support around 1.20 is a relevant fact speaking from a technical perspective.

The pair traded briefly below, during the global financial crisis and the European debt crisis but always recovered, retracing higher. It lost 800 pips in January when it broke decisively below.

EUR/USD held above 1.0000

The pair fell to 1.0460 in March and recovered but failing to hit above 1.1200. The Us dollar gathered momentum in November pushing the pair towards the lows, but rebounded in December and rose from 1.05 to 1.10.

The euro predicted to be headed below parity predictions did not materialize. Some analysts still believe the Eur/Usd will trade blow 1.0000 sometime in 2016.

US general economic data and Euro zone inflation numbers might be relevant for the Eur/Usd among other factors in 2016. In a year of presidential elections, how quickly the Fed will hike rates will mean much to the US dollar.

 

 

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