Sentinel 1973 – Explains the Recent Rise in the Euro

AUCKLAND, NEW ZEALAND / ACCESSWIRE / August 31, 2017 / As the Eurozone economy starts to gradually improve, the euro is trading at levels not seen since January 2015 and is on its best run in five years. In early August the currency hit a two and a half year high against the dollar, posting at upper limit of $1.18. Sentinel 1973, the world’s CFD broker market leader, recently discussed the various factors driving the growth of the euro.

On course for its best year since 2003, when it ended the year up more than 12 percent, the euro has risen nearly 13 percent since the start of 2017 and posted five monthly gains in a row. Several political factors have occurred in favor of the EU to propel these numbers, the experts from Sentinel 1973 explained, including the passage of the French election and an amicable German referendum. These events have culminated in the removal of the majority of anticipated European political risks, and investors have been able to instead focus on the strong fundamental growth in the region. Preferable domestic circumstances coupled with annual gains reaching their highest levels in six years has allowed for the European Central Bank to tighten their predominantly loose monetary policy and put a check on years of uninhibited budget expansion.

The largest international influence has been the wavering strength of the US dollar. After the Federal Reserve indicated that they are more than likely done raising interest rates in 2017, the euro began a sustained rally. The US dollar approached a 14-month low in August as investors continue to speculate on political turmoil in Washington and the impact of President Donald Trump’s policies on the larger economy. Even still, the euro is undervalued and projects to move closer to $1.30 in the long term. One analyst forecasted that the currency will approach $1.29 over the next 18 months if the ECB adjusts the deposit rate back to zero ahead of the end of bond-buying. Strengthening the euro over the dollar is strong economic performance backed by a convergence of record GDP gains, low unemployment, business and consumer sentiment and inflation. These factors should continue to propel growth across the EU for the next several years, and will intensify further if the US cycle turns the corner and begins to reverse as predicted.

Sentinel 1973 is the Internet’s leading broker market of Contract for Differences (CFDs). With a specialization in the trading of financial products in Over the Counter (OTC) and organized stock markets, the firm offers customers advanced technological solutions through proprietary trading platforms and the support of localized expert teams to achieve, maximize, and maintain success in their investments. With ten platforms to trade more 200 financial instruments and OTC CFDs, the firm is able to serve retail and institutional clients in more than 180 countries in Europe, Asia, Middle East, Africa and Latin America.

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