As Euro Slides, Strategists Cut Forecasts
Some Investors See Single Currency Falling to Parity With U.S. Dollar
Rip up your euro forecasts.
A day after the European Central Bank unveiled its bond-buying program, the single currency still was in free fall, blowing past analysts’ expectations for how low the euro can go.
Some investors now say the euro could fall to the point where it is on equal footing with the U.S. dollar for the first time since it climbed above the buck in late 2002.
“If you would have asked me a few months ago, I would’ve said that parity could be in the cards in the years ahead. Now, we can’t rule it out anymore even by the end of this year,” said Thomas Kressin, head of European foreign exchange at Pacific Investment Management Co., or Pimco, which has $1.68 trillion under management.
Late Friday in New York, the euro fell 1.4% against the dollar, to $1.1206, on top of a 2.1% slide the day before. It is now down 7.4% against the dollar since the turn of the year and is at its lowest point in more than 11 years.
http://www.wsj.com/articles/as-euro-slides-strategists-cut-forecasts-1422045084
You know.. I honestly do not think the government does anything on purpose to cause instability and problems in the world, yet, when there are problems -- the economy does better over here.
Part of the reason is "flight to safety" and money comes over here to the US, into dollars, US bonds, in troubled times.
So, looks like the euro is headed for parity with the dollar, and who knows the dollar may climb on it thereafter. Thoughts?