EUR/USD in the perspective of the ECB meeting

EUR/USD in the perspective of the ECB meeting

2019-11-11 • Updated

On Thursday, January 25 there will be a meeting of the European Central Bank. As usual, the ECB will announce the interest rates and ECB news. Forecasts, as well as the rise and fall of the interest rates, affect the currency rate. In anticipation of the ECB meeting, we are offering you to look at forecasts of different banks.

Let’s start with positive prospects for the US dollar. Despite the weakness of the dollar, some economists claim that it will have chances to grow soon.

Bank of America Merrill Lynch Research claims that strengthening of the US economy was not taken into consideration before. A good economy will lead to the tightening of the Fed policy and the rise of the US dollar as well. The bank thinks that events of the ECB were over-emphasized, that is why the EUR/USD pair was growing. It expects the fall of the Fiber pair because of the Fed actions.

Bank of Tokyo-Mitsubishi UFJ also announced a bearish trend of the EUR/USD pair. It sees the price at 1.19.

Credit Agricole CIB Research makes positive prospects for the dollar in a short-term but not so positive in a long-term. It expects the dollar to be falling in general, but this week it will have chances to appreciate.

BNP Paribas Research has more neutral forecast. In a monthly prospect, it sees the EUR/USD pair at the price 1.22, nearly to what it is now. It forecasts the growth to 1.30 by the end of the year but after the slight decline. Paribas Research does not see any point to expect great changes in the ECB policy, the January meeting even can be a little bit dovish that will lead to EUR/USD 1.21.

The Dutch Bank ING Bank N.V. considers the consolidation of the Fiber at 1.22 before the strength during 2018. Any weaknesses of the dollar will not affect the euro, it will stay stable in a short-term.

Considering the forecasts of the banks, we cannot make one general prospect because opinions are different. But we can see one tendency, the euro is not supposed to rise in a short-term, the decision of the ECB is not considered as crucial this time, the EUR/USD pair supposed to be steady or will fall a little bit. However, some of the banks give chances to it to grow during 2018.  

Tips

To get more information on a technical analysis of the EUR/USD pair, you can read the article:

Are there any chances for EUR/USD to overcome 1.23?

Similar

What will move the market on September 6-10?
What will move the market on September 6-10?

Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.

USD Declines on Powell Remarks
USD Declines on Powell Remarks

After multiple hawkish remarks over the past few days from non-voters members, the Federal Reserve chairman Powell surprised the markets with some dovish remarks…

S&P in the Сrosshairs
S&P in the Сrosshairs

Institutional investors speak about further growth in the stock market. In the exact market that has doubled since COVID-19 and doesn’t plan to stop. Is it possible?

Latest news

CONSUMPTION AND ITS INFLUENCE ON THE ECONOMY
CONSUMPTION AND ITS INFLUENCE ON THE ECONOMY

How to understand if an economy is accelerating or decelerating? What are the indicators that can guide us in this interpretation? One of the ways in which we can assess this situation is precisely the household consumption, which fundamentally refers to…

CREDIT CYCLES IN THE ECONOMY AND THE BRAZILIAN CASE
CREDIT CYCLES IN THE ECONOMY AND THE BRAZILIAN CASE

Credit cycles (or leverage cycles) represent moments in the economy of a country when families and companies get indebted, in order to invest or to spend in different segments, which ends up positively influencing the level of the general economic…

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera