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ECB vs euro rally?

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The growth of the euro can hold back inflation in the region, so the European Central Bank will try to rein in its currency if the Fed takes care in December or early next year. This opinion was voiced by strategists Banco Santander, exploring the dynamics of the ten leading currencies of the world.

"The focus on risks indicates that the bank has returned to a pessimistic assessment of prospects, despite the fact that the forecasts for economic growth and inflation have not changed much in any direction, and asset purchases are coming to an end. It still sounds like the bank does not want the euro to start the rally. The growth of the single currency can prevent the acceleration of inflation," says in the comments of the financial corporation.

According to experts, the euro in a pair with the dollar may well soar to 1.20 on the difference in the monetary policy of the two countries. This will happen if the members of the Federal Reserve regarding the rates will be restrained, as well as their rhetoric, while European regulators will gradually increase the rates in the second half of 2019.

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On Thursday, EUR / USD responded with a decline to the speech of the ECB President Mario Draghi, who made a statement at the last meeting this year. He announced that the regulator today has completed a historic program to stimulate economic growth.

The material has been provided by InstaForex Company - www.instaforex.com