Hey traders, tell me what yoyu think about this article I just read...
Euro downtrend witnessed during the first half of the current year, when the pair dropped from 1.4500 to 1.1875 low, is expected to resume , despite current recovery, and extend during the rest of the current year and into 2011, according to Forex.com's third quarter's forecast.
The Euro will continue depreciating on for the next quarters, weighed by European fiscal cutbacks , which according to FOREX.com analysts team will undermine European recovery: "Euro weakness will persist throughout the third quarter and into 2011, with the Eurozone’s fiscal cutbacks undermining European growth and potentially derailing the global recovery."
On the other hand, the US Dollar will be favoured by risk aversion when the US removes fiscal stimulus measures aimed to boost recovery, according to Brian Dolan, FOREX.com’s Chief Currency Strategist: "With U.S. fiscal stimulus set to phase out in the second half of 2010, a U.S. slowdown will decelerate the economic rebound and generate another dip in risk sentiment, supporting the dollar as a safe-haven currency and keeping pressure on the euro, the pound and the yen.”