FXStreet (Córdoba) – The euro almost 10% of its value against the US dollar lost during 2015; the previous year it lost 12%. During the last day of trading of the year is falling modestly, trading slightly below 1.0900 but far from 2015 lows that reached under 1.0500.
Monetary policy divergence weighed on EUR/USD. The European Central Bank announced several stimulus measures while the Federal Reserve started the normalization process of monetary policy by raising rates in December.
From a technical perspective, a relevant fact was the break of a long-term support around 1.20. During the global financial crisis and the European debt crisis the pair traded momentarily below but it always rebounded, correcting higher. In January, it broke decisively below, losing that month 800 pips.
EUR/USD held above 1.0000
The pair bottomed at in March at 1.0460. Then it experienced a recovery but it failed to confirm above 1.1200. In November, the US dollar gained momentum and pushed the pair toward the lows, but in December rebounded and climbed from 1.05 to 1.10.
The predictions that the euro was headed below parity did not materialize. There are still some analysts (but less than ten months ago) that consider that the EUR/USD will trade below 1.0000 at some point in 2016.
Among many factors, in 2016, US general economic data and Euro zone inflation numbers could be relevant for the EUR/USD. How fast the Fed will raise rates in a year of presidential elections will also be important for the US dollar.
(Market News Provided by FXstreet)