In the near future, the European currency may fall through parity with the US dollar. Analysts expected the decline only in a year. But after the euro sell-off in March, they changed their mind.
At the moment, the market expects the euro to fall and hit its all-time low. New growth of the US dollar may be caused even during this week. Moreover, another meeting of the Federal Reserve Committee is expected. Analysts hope that the regulator will confirm their forecasts of the interest rates hike. But probably, Federal Reserve Chair Janet Yellen will prefer a neutral tone for her announcement. As a result, there will be more questions than answers.
According to the outlook, the GDP in the US will show a slight jump in the first quarter of 2015. Despite the decline of the unemployment rate and positive changes on the labor market, Americans do not spend their money heavily at the beginning of the year.
According to most experts, the retail sales slide was due to bad weather. However, the Fed needs to make sure that the information is reliable.
The central bank is likely to announce its readiness to be patient, while the macroeconomic indicators will not become stable.
