The Euro is sharply lower today against the US dollar as strong GDP numbers from the US hit the market bringing to a halt the Euro’s recent winning streak.
At 7.47PM (GMT) the Euro was fetching 112.51 against the US dollar, down from 113.13 in yesterdays close.
After reaching a 7 month high of 117.13 four days ago the European currency has pulled back sharply, with some analysts saying that the spike was only temporary and that they expect to see the US dollar, Euro pair on an equal footing by the end of the Year.
Currency analysts at Bank of America Merrill Lynch are one of the big banks forecasting the Euro to hit parity with the US dollar by the end of the year.
Even more pessimistic are currency strategists from Goldman Sachs who forecast the Euro to hit 95 cents against the greenback in 12 months as the US tightens monetary policy.
Important news out of the Eurozone tomorrow including the industrial and consumer confidence indexes, as well as CPI numbers from Germany may help to shape the direction of the Euro as we head into the weekend.
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