This is very interesting example why when we look at the exchange rate we have to take a deeper look to see what really happened. We need to know what really happen, even if one currency rises against another, it does not mean that there is a depreciation of the foreign currency.
The following charts represent various back tests which use the signal data from the I Know First currency prediction table. Tests were made from July 1st 2014 to September 30th 2015.
Currently, 1 euro is equivalent to $1.06. This is a drastic change from 2011, when the difference between the two currencies was more than 50 cents greater. Now, the question has become whether the value of the dollar will surpass that of the euro.
For the past eight months, the US dollar has appreciated on a trade-weighted basis at a faster pace than during any period of the same time previously.
The euro fell to an 11-year low against the dollar on Friday, a day after the Swiss National Bank (SNB) made a surprise decision to eliminate its exchange rate cap. This removed a source of support for the euro, adding further pressure to the currency that has been troubled with fears that the Eurozone economy is grappling with slowing growth.
