Top
    Close photo mode

    Report experts: Euro decline will lead to strengthening of US-dollar

    Political developments in Europe may decline Euro to 0.80 USD

    Baku. 21 November. REPORT.AZ/ It is clear that strengthening of US dollar in recent days is due to the expectancy from Federal Reserve System (Fed) to increase discount rate at a meeting on December 13-14.

    Analytical Group of Report News Agency informs, currently, expectations about this decision increased to 96%.

    These assumptions are reflected in depreciation of the major currency pairs USD/EUR by 5% over the last two weeks.

    "After that, fate of USD/EUR pair will be linked to the political processes in European Union (EU).

    Thus, election and referendum in France and Italy in few days will have direct impact on the euro. Thus, popularity of the National Front, a national-conservative political party leader Marine Le Pen increased in the presidential elections in France. In the case of being elected as president she will put France's EU membership to the vote in referendum.

    In general, populist movements come up again around the world. Parliamentary reforms will also be put to the vote in referendum to be held in Italy on December 4. If referendum not supports current Prime Minister Matteo Renzi, he said he will resign.

    If Marine Le Pen wins second round of the presidential election in France on Sunday, or reforms in Italy not supported it will depreciate exchange rate of the euro", the analysts said.

    Notably, USD/EUR exchange rate fell to the point of 1.0456 in 2016. Political processes in Europe can lead it to the lower level.This will bring the exchange rate of euro to the minimum level of last 14 years.Overall, the negative political developments in Europe will continue in next few years and even can cause collapse of EU. As a result, the euro will be reduced to the range of 0,80-0,85 USD.

    If you find out orphographic mistake in the text, please select mistaken part of the text and press Ctrl + Enter.

    Last added

    At least one category must be selected

    All news


    Orphus sistemi