The single European currency continues its downfall against the US dollar. The euro slumped to $1.0975 after it closed the previous session at $1.0984. Experts say that the common currency has lost 20 percent of its value against the US dollar since May 2014, and still expects further decline.
According to economic forecasts, the euro is likely to plunge to $1.05 by the end of 2015. The average euro/dollar exchange rate is seen at $1.06 in 2015 and $1.1 in 2017.
The predicted weakness stems from discrepancies between the monetary policies carried out by the United States and Europe. In 2016, the European Central Banks is expected to continue its quantitative easing program, while the Federal Reserve intends to raise its interest rates.
Meanwhile, foreign exchange traders are awaiting the US unemployment data for July that will determine further movement of the currency pair. The Department of Labor is to release the weekly report at 12:30 GMT on August 7. Unemployment is expected to remain at 5.3 percent while the number of jobs is likely to increase by 225 thousand.
The US dollar climbed against the Japanese yen during the trading session on Monday from 123.89 to 124.06. The euro also rose against the yen from 136.08 to 136.17.
