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Fresh 12-Year Low Forecast for EUR USD Exchange Rate before Year End

November 26, 2015 - Written by Frank Davies

Thanksgiving Holiday Doesn't Prevent EUR, GBP Exchange Rate Movement



Today’s trading day has seen lower trading volumes than previous recent sessions thanks to US markets being closed for the annual Thanksgiving Holiday. However, it was a case of ‘business as usual’ for investors in the UK and the euroland and the US shutdown didn’t stop there being considerable price action for several leading tenders.

Euro Forecasts: Spanish Recovery Stalling? Could Weigh on EUR Spot Rate



The nascent Spanish economic recovery appears to be stalling, if official statistics published earlier are to be believed. The National Statistics Institute in Madrid released official numbers earlier showed that Spain’s economy expanded by a relatively-lowly 0.8% during the three months to the end of September.

Pound Sterling to Euro Trends Close to Best Conversion Rate



Spain’s centre-right Prime Minister Mariano Rajoy, who is heading for a General Election in the week preceding Christmas, was hoping for a stronger figure. Rajoy has previously expressed his confidence that Spain will maintain its position as one of the fastest growing economies in the euroland by expanding by 3.3% during 2015. The result therefore came as a blow to his political ambitions and to the euro (currency : EUR) alike. The Pound Sterling euro exchange rate slipped back into the 1.4100s during early trading this week but by the latter part of today’s European equities trading day the pair had improved to 1.4248.

EUR-USD Predicted to Hit 12 Year Low before 2016



Most analysts feel that the shared currency remains firmly in the ‘at risk’ category thanks to next week’s European Central Bank (ECB) policy announcement. ECB President Mario Draghi promised in October to re-assess the scope of his Bank’s Quantitative Easing programme at its December get-together. The suspicion exists amongst analysts that Draghi will make a big announcement aimed at weakening the single currency – a shift which would cause the euro area to import foreign inflation. Stephen Bell of BMO Global Asset Management explained, ‘he’s going to pull a rabbit out of the hat - we’re just not sure what that rabbit will be,’ before going on to predict that, ‘the euro is going down heavily.’ Futures markets agree with him – they forecast that the euro will strike a fresh 12-year low against the US Dollar (currency : USD) before the end of the year.

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