The Euro Will Fall To Parity Against The US Dollar In Two Years.
Holland International Group (ING) has become the world's most accurate Foreign Exchange Forecasting institution in 2014 because it has seen more euros than most institutions.
The Holland financial institution believes that there is no reason to change its current strategy now, and that the euro will fall to parity with the US dollar in two years.
After seeing the euro slipping from its high point of $1.3993 last year to $1.1762 today, ING continues to expect the euro to depreciate to $1 all the way.
Exchange rate
Last appeared in 2002.
Far from the median estimated by 30 analysts from Bloomberg survey, it will fall to $1.16 by the end of 2016.
ING believes that the European Central Bank has been encouraging the downturn.
Eurozone
The measures taken by the economy and avoiding economic deflation will be more frightening to the euro than most other agencies predict.
As the European Central Bank will expand the supply of money, especially the attractiveness of the fed to raise interest rates and increase the value of US dollar assets, few investors will need the euro.
"We are the most empty.
Euro / dollar
One of the agencies, "ING PetrKrpata, a foreign exchange strategist in London, told Bloomberg news.
"It looks as if the Fed will start raising interest rates ahead of time, not even later, and may even be late in the second quarter, which will further lead to the division of monetary policy between the two places."
ING won the top spot in the 2014 Bloomberg FX analyst rankings. In early 2014, ING predicted that the euro would fall 13% to $1.20 by the end of the year, when the Bloomberg economist surveyed the median value of 1.28, and finally the euro bid farewell to the US dollar at a 1.2098 price in 2014.
At present, watching the euro has become the mainstream trend of investment banks, but many people think that the current downturn is too fierce and may need to wait for a call back.
For example, the Bank of Paris in France reported on Thursday that the exchange rate will be down to 1.15 at the end of the year, and that there will be further downside risks in the exchange rate.
But we should wait until the exchange rate rebounds to 1.20 above and then go short.
Kit Juckes, head of global foreign exchange operations at Societe Generale, said it was inclined to short the euro against the US dollar, but he said a close stop should be set because the exchange rate had already exceeded his expectations and had not rebounded.
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