Report Analytical Group: Euro rate may reach $ 1.25

Baku. 10 January. REPORT.AZ/ In global market, there might be a slight decline in short-term outlook for euro against the US-dollar. The reason for this is partial realization of investors' revenues after 15% rise in euro against dollar in 2017, uncertainty as a result of parliamentary elections in Italy on March 4 and the possibility of raising discount rate by Fed in March session.

Analytical Group of Report News Agency believes, therefore USD/EUR rate is likely to decline to 1.17 level: However, it is likely that the rate will increase up to 1.25 USD/EUR in 2018. Analysts believe, technical analysis shows that in the II and III quarters this year the rate may rise to this level. But then the exchange rate is expected to decline gradually to parity and even fall below.

Thus, the fact that development of US economy historically faster than the eurozone economy will toughen Fed's monetary policy more than ECB’s policy. As a result of which the demand for the dollar will be high.

At present, although Fed's rate is at 1.50% and ECB’s at 0%, because of the strengthening of U.S. dollar it is artificially lowered due to the hardening of the US economy at this stage. Also, oil prices will continue to stay high throughout the year to help increase the Fed's rate”, experts added.