20.10.2015 - The volatility of the euro will be raised this week
The price of euro has strengthened today, despite the weak data on the euro area balance of payments surplus which fell in August to 17.7 billion against 25.6 in the previous month. Strengthening of the euro negatively affected the inflow of foreign investments from the Middle East and Southeast Asia. Investors did not rush to build up positions ahead of today's speech of Fed Chairman Janet Yellen and the decision of the ECB on monetary policy, which will be published on Thursday. According to our estimates the likelihood of higher interest rates and the Fed easing monetary policy of the ECB towards the end of the year continues to rise, that will be negatively displayed on the quotes of euro. In this regard, we expect falling prices in the medium term.