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