Economic news

Review: Barclays the latest big bank to back off euro below parity with dollar forecast

Barclays became the latest big foreign exchange trading bank to refuse its estimation that the euro to drop below parity with the greenback, declaring on Thursday that it now considers the single European currency will fall to as low as $1.03 this year and after that will recover.

Reconsideration is due to the lower political risk from a series of elections in Europe. Another factor is anticipation that the European Central Bank will shift to normalize its ultra-loose monetary policy faster than earlier expected.

The dollar, in its turn, is barely to get much more increase from U.S. monetary policy.

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