EURUSD - USD Likely To Rise further - lower interest rates
Wanted to share this around the outlook on the EUR and Dollar. Looking at a more long term chart one notices the weakness in time of the EUR versus the Dollar.
All simple and forward. The dot.com bubble burst was more difficult for the EUR zone then the USD. Same for the subprime crisis.
Then came the negative interest rate in Europe. And that sucked most of the life out of the EUR.
These negative interest rates are still ongoing in Europe and along comes what history maybe falsely will claim to be the Covid-19.
So what could we predict for the future of the EUR and USD.
The US is dealing much better with the Covid pandemic. Vaccines are being administered in record times. The US economy will likely bounce back better and faster then in Europe.
The now democratic leadership will initiate a central bank based digital USD and will use it to provide economy stimulus. The ECB will follow suit.
Yet given that the US is pumping way more USDs into the world then EUR is being created all this stimulus will be stimulus in USD.
The World Economic Forum is setting the tone of where the money will flow.
Et voila, I believe the EUR will drop further.
Keep in mind this is like all predictions crystal ball territory. I believe the historic view shows USD will reign. Only maybe the Chinese could put a dimple into that, but the US is sure to work against that.
So stronger economy and recovery means stronger currency in my view.
** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
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All simple and forward. The dot.com bubble burst was more difficult for the EUR zone then the USD. Same for the subprime crisis.
Then came the negative interest rate in Europe. And that sucked most of the life out of the EUR.
These negative interest rates are still ongoing in Europe and along comes what history maybe falsely will claim to be the Covid-19.
So what could we predict for the future of the EUR and USD.
The US is dealing much better with the Covid pandemic. Vaccines are being administered in record times. The US economy will likely bounce back better and faster then in Europe.
The now democratic leadership will initiate a central bank based digital USD and will use it to provide economy stimulus. The ECB will follow suit.
Yet given that the US is pumping way more USDs into the world then EUR is being created all this stimulus will be stimulus in USD.
The World Economic Forum is setting the tone of where the money will flow.
Et voila, I believe the EUR will drop further.
Keep in mind this is like all predictions crystal ball territory. I believe the historic view shows USD will reign. Only maybe the Chinese could put a dimple into that, but the US is sure to work against that.
So stronger economy and recovery means stronger currency in my view.
** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
--------------------------------------------------------------------------------------------------------
!! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!