The euro exchange rate continued its decline against the US dollar after the European Central Bank’s officials confirmed their decision to increase the size of the quantitative easing program. Experts suppose that the decrease was triggered by a speech of one of the Executive Board members.
“We are also aware of seasonal patterns in fixed-income market activity with the traditional holiday period from mid-July to August characterized by notably lower market liquidity. If need be, the frontloading may be complemented by some backloading in September when market liquidity is expected to improve again,” Executive Board member Benoit Coeure said.
Events concerning the Greek crisis and problems caused by the necessity to pay back a large debt also undermined the European currency. Most analysts are sure that Greece is practically unable to clear the existing debts.
"I think the agreement is unlikely within a week and within two weeks, so Varoufakis’ claims are baseless. The Greek government has not made yet significant concessions to the creditors. At the same time, the creditors are unlikely to continue giving money to Greece if the country refuses to meet their demands,” Dimitris Vayanos, the head of the financial department at the London School of Economics said. Under the current circumstances, the euro is likely to reach parity with the US dollar soon.
