As expected, the single European currency weakened against the US dollar. However, according to analysts, the demand for the greenback will fade in the near future. Today, after a sharp fall, the euro is trying to recover from its losses. The EUR/USD pair is trading at 1.1910. Currency strategists expect that soon the single European currency will return to 1.20. Still, the release of the monthly ECB report indicates that these factors are unlikely to come true. The pair iis trading under pressure amid the ECB keeping the key interest rate at 0 level. At the monetary policy meeting held on September 7th, 2017, the European Central Bank announced its plan to prolong the quantitative easing program until the end of 2017.
Moreover, the bank decided to maintain the asset purchase program until inflation in the region will be at the target level of 2%. Given the Eurostat data, the eurozone inflation rate advanced to 1.5% year on year in August. The core Consumer Price Index shows acceleration, but it is not enough to tighten the monetary policy. In general, the EU economy demonstrates a gradual strengthening. As for the further movement of the euro, analysts believe that the single European currency will be able to stand up to the US dollar in the short-term ahead of the important political event in Germany, the general election which will be held on September 24th.