I regularly trade on EUR/USD so I have decided to analyse fundamental factors for the growth of EUR last year. As this year, from the last three months EUR/USD trending sideways so my attempts is to find out which side it may break.
I have deliberately mentioned speculation in the title of my article, as in 2017 on many occasion there were several discussions about the topic that, European Central Bank may end quantitative easing programme as scheduled in December 2017. When I look back in history, Eur's downfall started in 2008 as Eurozone and world witnessed a recession. Falling growth, rising unemployment rate, falling inflation so ECB started Quantitative Easing means a bond buying programme in 2015, to raise money supply in the system and lowered interest rates to negative. Rising money supply makes loan cheaper and so tends businesses and people to spend more on various fronts. Like investments in business expansion may grow up which in turn leads to rising employment and economic growth.
Disclaimer : Made by me from data source on ECB website.
Last year we have witnessed a low of 1.034 in EUR/USD and from there it has grown almost 2000 pips and this year…