EUR is gaining value against USD and this is irritating ECB President Draghi. ECB President is betting on a scenario where with a low value of EUR against USd and because EUROZONE is depending on commodities import, the devaluation of EUR against USd would create and imported inflation. But there is a problem on that rational. Draghi didn't foresee the fall of the commodities prices......
Therefore he will have to intervene in a more severe way on the exchange rate.
At the present, there is a consolidation of USD against Euro, but this would not break the general trend which is at max 1.307-1.31. Above athat level ECB would intervene and any way it has to do so. The target of EUR against USD was 1.20-1.25 but because of the low price of commodities, ECB may have very muc hreview the target to 1.10-1.15 in order to import proper inflation throughout commodities prices.
Let's wait and see. But first a move towards 1.30xx. Then a fall down bellow 1.20-1.25
Therefore he will have to intervene in a more severe way on the exchange rate.
At the present, there is a consolidation of USD against Euro, but this would not break the general trend which is at max 1.307-1.31. Above athat level ECB would intervene and any way it has to do so. The target of EUR against USD was 1.20-1.25 but because of the low price of commodities, ECB may have very muc hreview the target to 1.10-1.15 in order to import proper inflation throughout commodities prices.
Let's wait and see. But first a move towards 1.30xx. Then a fall down bellow 1.20-1.25
