FX.co ★ Euro is going down

The Standard Life Investments Ltd.'s experts are making disappointing euro forecasts. At the end of the year this currency rate against the U.S. dollar may hit its ten-year low that is about $1.15. According to some analysts, the euro value will be decreasing during next year and a half, so that it will be equal to the dollar's one. On the one hand, the economy is shrinking; but on the other hand, there is growth of lending activity. These facts block implementation of the euro stimulation measures.
Investment Director at Standard Life Malcolm Jones said that any steps taken to enhance the economic growth will inevitably provoke the currency rate’s decline. “Our prognosis for the coming year is $1.15.”
Jones is sure that the current situation is favorable for the U.S. dollar. The greenback will continue to strengthen its position against the euro, yen and the Canadian dollar. That will be encouraged by the housing market rebound and the production growth. The ICE Dollar Index also demonstrated the ten-month high. All these factors make the economists predict the euro decline to $1.27 by 2012 and to $1.26 by March 31, 2014.