The speed of the euro’s decline is starting to put seasoned market-watchers on edge http://on.wsj.com/1CmLt7t
The speed of the euro’s decline is starting to put seasoned market-watchers on edge.
Monday, the currency hit another 12-year low, an almost daily occurrence right now, with the rate touching $1.0457.This is marvelous news for the funds that have bet on a slide.
But with the euro now down by almost 13% against the dollar so far this year and counting, it’s all happening very quickly. Many analysts had penciled in $1.05-ish for the end of this year. Now they’re scrambling for ‘more bearish than thou’ forecasts under parity.
As a general rule, major currencies just don’t move as sharply as this. Emerging-markets currencies sometimes, but not the big tectonic plates like the euro.
http://blogs.wsj.com/moneybeat/2015/03/16/the-euro-and-the-risk-of-a-squeeze/
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