EURO will weaken quite significantly in 2015. The head of the Global Currency Strategy at Morgan Stanley discusses what is going to happen to EURO in 2015. He thinks that EURO will weaken quite significantly in 2015. Well 2015 is long gone. I am rewriting this post in the first week of 2017. EURO is a currency that is tightly controlled by European Central Bank (ECB). In the past decade EURO has withstood a number of financial crisis. Greece was center of the last financial crisis. There were doom and gloom predictions. Did you read the post on Bank of England Governer Scorecard?
Many analysts predicted demise of EURO. But surprisingly EURO came out of these financial crisis with flying colors. EURO is a robust currency. ECB actively manages its currency. ECB started a policy of quantitative easing also known as QE. QE means flooding the market with cheap EUROs. This is done by buying bonds in the market. QE has worked fine and kept EURO weak. Analysts are now talking about EURO DOLLAR parity. So it has been a consistent ECB policy to keep EURO weak.
If you area currency trader, you should then take some time and learn how to do fundamental analysis. Fundamental analysis is the backbone that will show you where the market is heading long term. Technical analysis is just a short term prediction of price using charts. Technical analysis also depends on fundamental analysis. Taking a course in macroeconomics can help you a lot in understanding how to do fundamental analysis. Central banks are the key players in the market. Central banks have the power to make or break a currency pair trend. When you will understand how the central banks work, a lot of things will become clear to you. Do you know GBP/USD rally is just getting started?