The ECB, European Central Bank announced its monetary policy decision today and increased the interest rate by 75 basis points for the first in its history. This has caused the Euro to fall. The Euro has been falling for the past number of months against the dollar.
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Why has The ECB increased its Interest Rate?
The ECB has increased the interest rate as the cost of living crisis is becoming worse in the Eurozone due to higher inflation which is stroked by soaring energy prices.
Will Euro Fall in the coming days?
The chances are that the Euro will continue to fall in the coming days as the ECB will not be able to control inflation that quickly. The inflation in the Eurozone is running four times the target of the ECB.
Why is Euro falling against the pound?
The pound, the British currency also known as the Sterling, has a lot of problems that are similar to the Eurozone. Both currencies are falling fast against the dollar, which is a stronger currency now.
The reason the Euro is falling against the pound is that the Bank of England has increased interest rates many times this year, and this has made the Sterling stronger against the Euro. Also, it appears that the cost of living crisis is likely to be controlled much sooner in the UK than in the Eurozone. Hence, the Sterling is likely to remain stronger against the Euro in short to medium term.
Is Euro up or down today?
Dust is settling now as the ECB has made its monetary policy decision, and it seems like the path of the least resistance remains to the downside for the Euro.
Trade Euro now
Euro Forecast for Next 6 months
The EUR/USD is likely to continue to move to the downside and could easily touch the level of 0.90 in the next month, if not before.
As for the EUR/GBP, the Euro is likely to remain a weaker currency, and we could see it falling to 0.70.
If you are looking at this against the Rupee, the Euro is still a much stronger currency, but the current climate is likely to keep pressure on the currency. The Euro could trade between 200 to 250 rupees in the coming months; 200 is the minimum, while 250 is the most upside.
Why Euro is it going down against Rupee?
The Euro has many problems now, such as higher inflation, higher interest rate, slow economic activity, less consumer spending, lower employment, and an energy crisis. These reasons are pushing the Euro lower against the Rupee
Will Euro Go up In 2023?
It is highly unlikely that we will see the Euro gaining any ground against the Sterling or the dollar. Although Euro is likely to rise against the Pakistanti Rupee and Indian Rupee.