The agreement of 27 European leaders on usage of €750 billion from so called recovery fund has sent a strong signal to markets – the European union is able to cooperate once any problem appears. And markets did perceive the signal appropriately. The euro, an united European currency, has grown against the American dollar in 0.6%. An exchange rate rose up to $1.1516 per euro. Such exchange rate was last seen in half January 2019.
Analysts reported that the euro could grow even higher. They believe that an exchange rate of 1.17 dollar per 1 euro would be a possibility. ING Bank analysts even predict that the dollar drops against the euro to 1.2 dollar/euro in 2020. Moreover, they agree that investors will be buying the euro during downward slide and sell the euro when swinging upward in upcoming days and weeks. The result will be accumulation of euros into individual portfolios. Yet, negative forecasts of the dollar are caused by the pessimistic epidemiological situation in the US, which doesn’t signal an early recovery of the American economy.