Key 5 Reasons:
"First, the euro is not overvalued and its pace of appreciation has been relatively moderate.
Second, the current strength in the exchange rate reflects improved confidence in the euro area's economic prospects and fading deflationary risks.
Third, the ECB is approaching the end of its current QE program and has recently dropped its pervious reference to the possible need for lower interest rates.
Fourth, the average EUR/USD rate for the first eight months of this year has been 1.1050, compared with 1.1160 for the first eight months of last year.
Fifth, it might confuse well-planned policy guidance to try and weaken the exchange rate at a time when the ECB will soon be providing details on a the aftermath of its current QE program, which is widely expected to involve communication of details of a tapering program or reduced asset purchases at the 26 October meeting,"
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.