The euro has enjoyed a strong rally so far this summer. It has quietly gained on its early summer low of $11.8, and recently surpassed $1.30. Despite the recent strength of the euro, several investment firms have gone public with predictions that the euro rally is unlikely to last.
BNP Paribas for instance, suggests the euro could end 2010 at $1.08. One school of thought, is the possibility of an upswing in carry trades using the euro to finance the purchase of higher-yielding currencies.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.