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Tuesday, 26 May 2015

EUR/USD heads towards parity



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The uptrend of the Euro against the US Dollar seems to have aborted, and the Euro plunges towards parity with the Dollar.

Causes for the change:
  • Great Britain prepares contingency plans for leaving the EU (so what? Just the effects this story has on sentiment);
  • The Greek government announces its intention to default on IMF payments (hardly unexpected);
  • European Central Bank announces intention to double its Quantitative Easing (clever damper on the surge of the Euro); but,
  • More importantly, better economic figures from USA and FED hints that its interest rates may increase as early as September 2015.

Blocks on EUR/USD journey towards parity occur about now ($1.085), and, again, around $1.05.

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