Euro exchange rate may surprise to the top side this week.
There is a lot of news this week and the biggest is the FOMC meeting with the first time in charge Yellen set to mark her mark on the event. This could be the driving force of the Euros to us dollar exchange rate taking the 1.4000 level out.
We also have the threat of Russia turning off the gas in retaliation to economic sanctions. The Ukraine must feel between a rock and a hard place – Russia seems to have claimed the Crimea for its own – will the rest of the world care enough to allow this to happen?
The Euro Zone may talk about sanctions but the trade off of Putin holding them to ransom over gas may turn out to be to much of a risk.
Therefore nothing will be done.
Super Mario Draghi still has the problem with forex traders still buying euros and may force his hand this week.
Is the ECB going to let the Euro exchange rate go above 1.4000 – he has already tried to talk his way out of this – but it hasn’t really worked and the threat of deflation is a real risk.
hmmm buy euros or sell euros that is the question?