The upward reaction of the euro has been overwhelming following comments by European Central Bank (ECB) President Mario Draghi. At first, it has appreciated up to 1.2%, comfortably regaining the $ 1.2 and rising to levels not seen since the start of 2015.
Specifically, the European Central Bank (ECB) has kept interest rates unchanged at the same time as it has significantly improved growth forecasts for this year. In addition, Draghi has put the market’s attention in the meeting that the entity will maintain next October, since it will be then when most of the decisions of monetary policy are taken.
All of these comments are those that, after the initial euphoria, still cause the euro to increase its cross against the dollar by more than 0.8%, above the level of $ 1.2.
Joan Cabrero, director of strategy for Ecotrader, indicates that “the first resistance that the euro finds on its way up is in the area of $ 1.21 .” Similarly, the expert adds that “although it is bullish in all terms, yielding the support of $ 1.18 would suppose a consolidation of the increases of the last months.”
The average expert collecting Bloomberg estimates that the euro will end the year in the area of $ 1.17 and in subsequent quarters will continue to appreciate to reach $ 1.23 in 2019. It also emphasizes that no house analysis commitment parity between the two currencies, putting the most bearers at 1.09 dollars at the end of the year, compared to 1.22 that the most bullish.