The recent weeks have been highly volatile in the FX market but one pair in particular has felt the punches of a strong Dollar and that is none other than the Euro. EURUSD pair has been in a constant decline and does not seem to find a bottom. With the introduction of the ECB's trillion euro QE and high employment reports from the US, the euro fell to 1.0483.
With majority of traders eyeing the FED interest rate decision the market clearly is betting on a weaker euro.
Even though this speculation has helped in weakening the euro further but majority of the banks believe that this rally is set to cut short of trader's expectations as they do not expect a chance in the FEDs interest rate at least for now. The speculation of a rate hike has been very helpful in pushing the pair down but in my opinion the downward moment is set to stop in the short term for now and a correction in the pair is to be expected.