Gavekal Capital: The Euro: Where To From Here?

Thursday, June 5, 2014

The Euro: Where To From Here?

In the wake of today's ECB announcement of rate cuts as well as additional measures to boost bank lending and head off disinflation/ deflation trends in many of its member countries, the euro has (unsurprisingly) moved lower versus the dollar:


How far might it decline?  If the Eurozone-U.S. short-term interest rate differential is any indication, it could fall quite a bit from current levels: