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22 Jan 2015
EUR/USD keeps falling and breaks below 1.1400
FXStreet (Córdoba) - EUR/USD dropped below 1.1400 for the first time since November 2003 and hit a fresh low at 1.1368. Since the announcement of the European Central Bank purchase program the pair has fallen more than 250 pips.
Investors were expecting some kind of QE by the ECB but the euro failed to find any relief after the announcement and it has been falling for six consecutive hours against the US dollar. Against other currencies, the euro has been able to stabilize. EUR/CHF and EUR/GBP remain near daily lows but they have been steady over the last few hours.
EUR/USD even lower?
According to the Global Research Team at HSBC, the new program from the ECB is likely to generate additional weakens in the euro. “We believe Japan's experience provides the best parallel for understanding the future path of the EUR. We therefore expect the EUR, already justifiably lower on the announcement effect, to fall further this year with EUR/USD reaching a revised 1.09 by the end of 2015 compared to our previous forecast of 1.15.”
Investors were expecting some kind of QE by the ECB but the euro failed to find any relief after the announcement and it has been falling for six consecutive hours against the US dollar. Against other currencies, the euro has been able to stabilize. EUR/CHF and EUR/GBP remain near daily lows but they have been steady over the last few hours.
EUR/USD even lower?
According to the Global Research Team at HSBC, the new program from the ECB is likely to generate additional weakens in the euro. “We believe Japan's experience provides the best parallel for understanding the future path of the EUR. We therefore expect the EUR, already justifiably lower on the announcement effect, to fall further this year with EUR/USD reaching a revised 1.09 by the end of 2015 compared to our previous forecast of 1.15.”