The euro has depreciated hard and dropped below $ 1.15 – La Prensa Grafica

The euro has depreciated hard and dropped below $ 1.15 – La Prensa Grafica

Markets are already discounting the new monetary stimulus from the European Central Bank (ECB) and the euro has depreciated hard and dropped below $ 1.15.

The euro has accelerated its depreciation this week ‘came on Friday at about $ 1.1470 , the lowest since November 11 of the year 2003 after the Swiss National Bank decided to leave the minimum exchange rate of the euro against the franc.

The different monetary policies of the ECB and the Fed US (Fed) have depreciated to the single currency against the greenback. The euro has fallen since the ECB set a target for the size of its balance sheet and said he wants to increase to 1 billion euros, up to 3 billion euros.

In mid-December the euro was trading around of $ 1.2450 and now about $ 1.15, 7.6% in just one month. The dollar will benefit in the coming months expectations of a normalization of monetary policy of the Fed.

The euro will put $ 1.12 later this year, told Efe currency analyst at Commerzbank Esther Reichelt. The single currency has fallen against the franc and most of the day on Friday about a franc changed.

Also, following the decision of the Swiss National Bank, many experts have revised downward its forecasts the exchange rate of the euro against the franc.

The euro will move between 0.95 and 1.08 Swiss francs next week, according Reichelt. The discussion on quantitative easing program not greatly affect the price of the single currency from next week because the volume of liquidity measures is already known.

The depreciation of the euro favors exports of exporting companies in the region and thus growth but will reduce the favorable effect of the fall in the oil price, which is paid in dollars.

“For the German market, the depreciation of the euro is very positive because it will allow Pour money into many export German companies, “said a trader at Kliegel & amp; Hafner.

Therefore the German Stock Exchange and other European stock markets have risen on Thursday and Friday, but not the bag Zurich.

The Swiss National Bank decided Thursday to leave to intervene in the currency market, a week before the ECB governing council meets to discuss the implementation of a program of quantitative easing, which includes the purchase of large amounts of sovereign debt.