Forex News

Live Forex news from all over the world.


Euro Drops as Dollar Rallies

January 26, 2017 at 22:38 by Vladimir Vyun

Euro banknotesThe euro dropped against other major currencies (with the exception of the Japanese yen) today as the US dollar staged a recovery.

Professor Ted Malloch (a potential candidate for the post of the US Ambassador to the European Union) told in the interview to BBC that the euro may collapse:

The one thing I would do in 2017 is short the euro.

I think it is a currency that is not only in demise but has a real problem and could in fact collapse in the coming year, year and a half.

Of course, not everyone agrees with such controversial view. Tan Teck Leng, a foreign-exchange analyst at UBS, told CNBC:

I think there is a big mispricing on the euro-dollar right now because the market is actually happily still using the euro as a funding currency for now because Draghi is extremely dovish.

He suggested to be long on the euro, arguing that the European Central Bank can become much more hawkish after this year’s European elections occur and the associated political uncertainty dissipates.

EUR/USD was down from 1.0747 to 1.0681 as of 22:25 GMT today. EUR/GBP declined from 0.8505 to 0.8477, retreating from the daily high of 0.8532. At the same time, EUR/JPY went up from 121.73 to 122.32, reaching the high of 122.66 intraday.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

Leave a Reply