Aggressive actions by the ECB to increase assets on the balance sheet prevent the European currency from unlocking its potential and demonstrating strong growth against the dollar. In September, the head of the ECB Christine Lagarde promised to reduce the pace of buying assets from October 1, but in reality nothing has changed and the monetary regulator of the euro zone is still aggressively printing money and buying bonds of the euro zone countries, which increases the already substantial profit of the euro in the financial system.

If the head of the ECB had kept his word, now the euro could well be at around 1.18, and possibly even higher, inasmuch as optimism reigns in the financial markets and investors are ready to get rid of the dollar and buy other assets. But this is all in theory, and in practice it is now difficult to count on a good rise in the quotes of the European currency.

Trading recommendation: flat 1.1600 – 1.1700.