Regardless of an upside amazement from August’s Eurozone trade balance data, the EUR to USD exchange rate continued on a feebler footing. The US Dollar currency rate has climbed recently pushing the EUR/USD conversion rate lower, amid firming expectations that Fed in the US will increase interest rates by 0.25% by the end of this year.
The Fed Janet Yellen’s speech at the end of last week, proposed as much after she said being accommodative for too long might have its costs. The Boston Fed’s Rosengren said that the that market hopes for a hike in the interest rate by the end of this year is “about right”.
He further said that he trusts the US was near overshooting his gauge of full employment and subsequently the market was hot.
After trading around the 1.1150 line for last few weeks, the Euro currency rate finally surrendered, on reports indicating that the European Central Bank (ECB) was looking to extending and expanding their bond purchasing programme as an alternative of previous rumours of the opposite.
This situation has led to a strong decline in the EUR to USD currency rate pair.
While the US Dollar seems to have continued its position as undisputed lord of the currency, it is impossible to say with regards to the heading of the Euro conversion rate, and with such imperative discharges as September CPI on Monday and after that the ECB rate meeting on Thursday.
Analysts believe that EUR to USD currency converter rate could move in any direction. Traders remain slightly bullish on the pair, as 53% of open positions are long. In the meantime, pending commands are 59% to sell the Euro.