Vista Brokers: Long-term Trend for EUR/USD Remains Bearish
On Tuesday, the euro strengthened against the dollar after the EUR/USD had reached the 11-year low at $ 1.1098 on Monday. Here, many investors preferred to take profits, and this eased the pressure on the single currency. Today, as Vista Brokers analysts say, the euro against the dollar trades at $ 1.1238.
Experts remind that a large-scale selling of the euro last week was caused by the decision of the European Central Bank to launch a quantitative easing program. Earlier this week, the bearish trend for the single currency was supported by the news about the victory of the radical forces in the elections in Greece. At the moment, the market has already taken a lead from these news and the pair came to the phase of correction. Most likely it will not last too long.
Greece will remain a factor of pressure on the euro. Investors will be watching Alexis Tsipras in anticipation of any statements and explanations of how he plans to fulfill his campaign promises. Also, some negotiations of the new Greek government with international creditors will attract investors' attention.
Recall that Tsipras and his party "Syriza" promised the electorate a significant reduction of debt and getting out of austerity. It is still unclear how radicals plan to achieve it. But the higher ranks of the European Union have already commented on this situation, saying that the cancellation of debt for Greece would be no question.
Meanwhile, analysts of world's leading banks rush to cut their forecasts for the euro. UOB Bank expects a decline in EUR/USD to 1.1000 in the coming weeks. Danske Bank predicts a drop below support level 1.1000 in the next 6 months.
The dollar on Tuesday fell slightly against the yen to 118.26 yen. Last week, the US currency was trading against the Japanese in a fairly wide range, from 117 to 119 yen.
The greenback this week may be strong influenced by the US Federal Reserve meeting, which starts today and will last two days. Investors are waiting for confirmation from the American regulator about the policy of monetary tightening.

On Tuesday, the euro strengthened against the dollar after the EUR/USD had reached the 11-year low at $ 1.1098 on Monday. Here, many investors preferred to take profits, and this eased the pressure on the single currency. Today, as Vista Brokers analysts say, the euro against the dollar trades at $ 1.1238.
Experts remind that a large-scale selling of the euro last week was caused by the decision of the European Central Bank to launch a quantitative easing program. Earlier this week, the bearish trend for the single currency was supported by the news about the victory of the radical forces in the elections in Greece. At the moment, the market has already taken a lead from these news and the pair came to the phase of correction. Most likely it will not last too long.
Greece will remain a factor of pressure on the euro. Investors will be watching Alexis Tsipras in anticipation of any statements and explanations of how he plans to fulfill his campaign promises. Also, some negotiations of the new Greek government with international creditors will attract investors' attention.
Recall that Tsipras and his party "Syriza" promised the electorate a significant reduction of debt and getting out of austerity. It is still unclear how radicals plan to achieve it. But the higher ranks of the European Union have already commented on this situation, saying that the cancellation of debt for Greece would be no question.
Meanwhile, analysts of world's leading banks rush to cut their forecasts for the euro. UOB Bank expects a decline in EUR/USD to 1.1000 in the coming weeks. Danske Bank predicts a drop below support level 1.1000 in the next 6 months.
The dollar on Tuesday fell slightly against the yen to 118.26 yen. Last week, the US currency was trading against the Japanese in a fairly wide range, from 117 to 119 yen.
The greenback this week may be strong influenced by the US Federal Reserve meeting, which starts today and will last two days. Investors are waiting for confirmation from the American regulator about the policy of monetary tightening.