FXStreet (Córdoba) – Dr Michael Schubert, analyst at Commerzbank, points that as ECB keeps QE on the cards and the Fed will start to gradually tighten policy, EUR/USD will drop toward parity next year.
“Since the ECB yesterday acted on a far more restrained scale than envisaged, the euro made good gains versus the dollar.”
“Yet the decisions will make little difference to the fact that more QE is on the cards in the euro zone, whereas in just under two weeks time the Fed will start raising rates again, and gradually tighten the reins over the course of 2016.”
“We conclude, therefore, that next year the euro-dollar rate will drop towards parity.”
(Market News Provided by FXstreet)