Weakness Likely to Persist in Early 2020 Before Rallying Later in The Year

The persistent weakness of the Euro against the US Dollar, which began in late September 2018, will likely persist in the first few months of
2020 although a rally could follow as the US Presidential Election in
November comes closer and climbs up the trading agenda.To get more news
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For the Euro, the key problem is that economic growth in the Eurozone remains weak and the European Central Bank may therefore decide
to ease its monetary policy even further. With the ECB deposit rate
currently at -0.5% that might seem fanciful but there is nothing to stop
its Governing Council from lowering the rate to -0.6% or -0.7%, even
though market pricing towards the end of 2019 was still suggesting that
rates will be on hold throughout 2020.

New ECB President, Old ECB Policy
Moreover, and perhaps more importantly, there is nothing to stop the ECB from increasing the asset purchase program that it restarted in
November 2019 at a monthly rate of €20 billion or from widening the
array of assets that it buys. It could also amend its forward guidance
to suggest that monetary policy will be eased even further if seen as
necessary. The previous ECB President Mario Draghi told his successor
Christine Lagarde to “never give up” on propping up the Eurozone economy
and that is advice she will surely take. There can also be little doubt
that Lagarde will remain dovish and continue to press the Eurozones
governments to ease fiscal policy by spending more or taxing less to
help boost economic growth.if you want know more,Download wikifx