Since Donald Trump after he won the presidential election, the dollar rally continued, the euro continued to be slack, it formed the two currencies, but not up.
Since the election, the dollar rose 9%, 0.96 euros since 2003 highs. This trend has brought parity expected that $1 worth about € 1.
Last time this happens, the Department in the year 2002. Oxford Economics analyst Adam Slater said Thursday that in 2017 and there will see parity.
Another analyst believes that the psychological levels may be faster to come.
Shi Leite says, this exchange rate, driven by monetary policy differences between the two sides of the Atlantic. United States Federal Reserve (Fed) is to raise interest rates, because the United States economy improves, expect price increases.
While the European Central Bank extended its recovery plan and hold interest rates at record lows to prop up the economy and push up inflation. Investors are attracted by rising interest rates and the strengthening of the economy, because its currency's rate of return would improve, the dollar is rising.
Europe is just the opposite. Trump great influence on exchange rates, due to his commitment to tax cuts and deregulation, also supports infrastructure schemes. His policies could create an inflationary environment, Fed and had to raise interest rates to curb inflation. It will also enable faster towards the goal of parity with the euro dollar.
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