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EUR/USD Exchange Rate Forecast for October 3

EUR/USD Exchange Rate Forecast for October 3

The last week has seen the EUR gradually weakening against the USD and at one point it reached as low as 1.2589. However, on Thursday the European Central Bank held its interest rate at 0.05% when it was widely expected that the rate would be lowered.

The announcement from the ECB saw the Euro reach session highs of 1.2661 against the Dollar. The bank also outlined details of its new bond purchasing program which is aimed at shoring up inflation. The head of the ECB, Mario Draghi, said that the covered bond operation will begin this month and the asset purchase program in the fourth quarter of this year.

Investors have been responding well to Draghi’s announcements and it seems that for now the EUR is on the up. It is likely to meet resistance around 1.2700 so while it is below this a short term Call option could be profitable.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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