This Tuesday, the Euro registered new minimum in 14 years, while Dollar reached its maximum closing in 14 years. The EU currency has decreased up to 0,42% located in 1,0358 respecting the American currency, being the earlier its minimum quota since 2003, according to ING Group.
Some state that, besides the next coming Christmas season, the recent and parallel terrorist attacks that held in Europe- the assassination of the Russian Ambassador in Turkey, and the truck that crushed in a small Christmas market in Berlin, may have affected the behavior of the currency. not only the US Dollar has seen benefits, but the Swiss Franc that has brushed its highest points against the Euro.
On the other hand, the American currency has reached its maximum index respecting to the other lead currencies since 2002. The stock exchanges point out that it is feasible that the different types of interest rates continue to grow in the U.S by the next year.
The Dollar index, that registers its evolution respecting the other main currencies, reaches 0, 5%, placing it 103, 59, being its maximum quota in 14 years. Apart from that, Janet Yellen, President of Federal Reserve presented positive statements towards labor market in the United States, placing its best moments during the last ten years. Based on these statements, it is hoped that there will be at least three more increments of this king during 2017, and they look for reaching similar conditions during 2018.
However, the currency behavior could be useful during the rest of the year, due to Christmas and New Year celebrations.
Meanwhile, the Euro falls to unseen levels since August 2003, (when it reached its lowest price to 1,0357 against US Dollar), reaching today 1,04 depreciations toward the American currency.
In fact, unlike Federal Reserve system, the European Central Bank (ECB), cannot provide the same endorsement to its currency, because it does not have any adjustment raising adjustments on the types of interests. On the contrary, during this month, the bank asked for an extension of the debt purchase program that it was supposed to end next year in March.
Coupled with this, the ECB announced recently that they will add another €540 million of quantitative easing to stimulate the Eurozone economy.
On the other hand, although it is estimated that the parity of both currencies will be only at medium term in views that are strictly technical, the thing is that this did not happen since the period 2000-2002 that Euro was below Dollar. However, it will depend on Janet Yellen and Mario Draghi’s policies (President of ECB) the success or not of these forecasts.
While the threat hears even worst what it actually is, and both economies, European and American go each other by their side, none of them represents destabilized economic indicators, that possesses a healthy growth, along with a totally control either its unemployment rate. To its inflation levels, so that parity will be almost the same, but monetary, giving a couple of years to the United States to maintain the top.