Hard for euro to make gains against dollar

Despite a considerable amount of volatility on financial markets and diverging trends in US and eurozone monetary policies, the key euro-dollar rate has remained quite range-bound over the past year, largely trading in a $1.06 and $1.15 corridor.

This period of stability followed the big exchange rate moves in the second half of 2014 and opening couple of months of 2015 that saw the euro fall sharply, declining from $1.40 to a low of $1.05.

The euro has had the upper hand in the past couple of months, though, climbing from $1.08 to as high as $1.14, despite the further loosening of policy by the ECB, including moving interest rates even deeper into negative territory.