The possibility of lower interest rates undermines the value of the euro
February 28th, 2010
The possibility of a price cut of the money in the euro area is gaining strength with the passage of time. The president of European Central Bank (ECB), Jean-Claude Trichet, not to insinuate that the next move in rates will be low due to the weakness shown by the strong economic growth.
This possibility, very true then, it has weakened the value of the euro after the European currency would appreciate against the dollar managed a 4.9% in just three days. Now he has returned to the area of $ 1.28 compared to 1.30 on Tuesday.
Experts agree that all factors play in favor of the dollar. The Journey to the downward rate of interest
is higher in Europe than in the U.S.. Furthermore, measures have been taken in the U.S. to facilitate the recovery has been much more aggressive, something that contrasts with the caution taken in the euro area.
In this sense, economists predict a value of the euro against the dollar within a band between 1.23 and 1.30 for the coming months.
Tags: European Central Bank (ECB), of interest, the euro., the strong economic