Euro/USD Exchange Rate Forecast to Rise Above 1.10 through 2017

[forextips]

The Euro will likely recover against the US Dollar through the course of 2017. The call for a stronger EUR/USD come at a time of intense downward pressure on the pair with many analysts now eyeing a 1:1 exchange rate being achieved in the near future. Consensus is for the EUR/USD to be at 1.03 by December 2017. 

USD losing ground against the Euro through 2017. The formal tapering of asset purchases will be an issue that becomes significant for markets towards the end of 2017.

The great risk to the Euro in 2017 is seen as emanating from the politics of the European Union, rather than the Eurozone economy.
Elections in France, The Netherlands and Germany present opportunities for far-right populist movements to flex their muscles and gain political control.

What they all have in common is a desire to leave the EU, and it is feared that one or more of these, the three largest economies in the Eurozone, could end up leaving.

If not a completed withdrawal from the EU, the rise in negative sentiment may cause a flight from risky assets and home back to safety, which is likely to upset financial markets too.

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