Euro Rebounds

The euro has rebounded versus the dollar rising as high as 1.1500 before retreating.  Although, we’ve seen better economic data out of Europe recently, the Euro exchange rate will largely be determined by U.S. data and ultimately when the FED decides to hike interest rates.  A country with higher interest rates typically attracts more investment capital and leads to a stronger exchange rate.

Mario Draghi, (European Central Bank Chairman) is likely to continue the ECB’s quantitative easing policy in an effort to boost the Eurozone economy.  Both the ECB’s easy monetary policy and the potential for a FED rate hike may lead to a readjustment to the Euro.

Translation: There’s significant risk the euro could fall from its current levels.