Recent Trials of the World’s Most Actively Traded Currencies EURUSD USDJPY GBPUSD & USDCHF
The year 2016 has been an interesting one for the forex market, including some surprising winners and losers. Below we survey the performance of the EURUSD, USDJPY, GBPUSD and USDCHF since the beginning of the year and look ahead to what might transpire over the next six months.
At the end of last year, many traders were expecting the EUR/USD to fall to parity in 2016 after the European Central Bank (ECB) expanded the size and scope of its monetary policy program. While the EUR/USD is trading nowhere near 2014 levels, it has held relatively steady over the past eight months. The euro has gained around 2.6% against the US dollar since January 1, but has declined more than 3% from the May peak above 1.1500.
The euro still faces a negative outlook tied to the weak performance of the 19-country Eurozone. The Eurozone economy expanded at a solid pace in the first quarter before seeing its growth halved in the April-June period. The ECB expanded its stimulus program again in March in an attempt to re-inflate the economy. The central bank is in wait-and-see mode at the moment, which may keep the EUR/USD range-bound for the foreseeable future.
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