According to analysts of one of the largest banks, Barclays, the euro has strongly surrendered its positions and lost its appeal to market participants. Experts recommend selling the European currency and buying the greenback, despite the current easing of the Fed's rhetoric.
On Tuesday, February 19, trading on the European stock exchanges took place in the "red" zone, which did not add optimism to investors. The situation was also not the most favorable one for the key pair of EUR/USD. Experts recorded a decrease of 0.3%.
Despite the fact that the leadership of the US Federal Reserve System (FRS) has taken a cautious stance, Barclays currency strategists are confident that in the near future this will not prevent the US dollar from strengthening against the euro. They believe that the weakness of the European currency will be a catalyst for such a movement.
Barclays believes that the euro lost all those drivers that provided the upward momentum of the EUR/USD pair in 2016-2018. One of the reasons for the deterioration of the situation was the growing political and economic risks in the eurozone. Barclays analysts point out recent weak growth in the eurozone countries, as well as a decline in investment in financial assets. According to experts of the bank, the fall of the euro against the US dollar is just a matter of time, or rather the next weeks or even days.
The material has been provided by InstaForex Company - www.instaforex.com