http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/ How Far Will the Euro Fall? The European Central Bank has started its quantitative easing program and the US Federal Reserve is promising to raise interest rates. The only question left is how far will the Euro fall? Project Syndicate asks exactly the same question. The US dollar is hitting new 12-year highs almost daily, while the euro seems to be plunging inexorably to below dollar parity. Currency movements are often described as the most unpredictable of all financial variables; but recent events in foreign-exchange markets seem, for once, to have a fairly obvious explanation – one that almost all economists and policymakers accept and endorse. French President François Hollande, for one, has ecstatically welcomed the plunging euro: “It makes things nice and clear: one euro equals a dollar,” he told an audience of industrialists. But it is when things seem “nice and clear” that investors should question conventional wisdom. A strong dollar and a weak euro is certainly the most popular bet of 2015. So is there a chance that the exchange-rate trend may already be overshooting? Will the combination of a EU stimulus program and higher US interest rates be the only factors that drive the USD EUR pair? What happens as a strong dollar weakens US exports? A Strong Dollar: the Bane of US Exporters According to The Wall Street Journal major U.S. exporters are already hurting because of a stronger dollar. The stronger U.S. dollar has hurt exporters and could dampen their investment plans for next year, top business executives said in a new survey. Two out of three big U.S. exporters–those with at least one-fourth of their total sales overseas–said the appreciation of the dollar has had a negative impact on their businesses. And nearly one-fourth of big exporters said they have reduced their capital spending plans as a result. “We are in a midst of an ugly contest to see whether the Eurozone, Japan or Canada can depreciate the most against the U.S. dollar, and China is probably next,” said Campbell R. Harvey, a professor at the Duke Fuqua School of Business and a founding director of the survey. “U.S. exporters are being punished by these competitive depreciations and this will lead to lower profits and less employment.” And lower profits and less employment will put the brakes on any significant raises in interest rates. Fed chairman Yellen said as much recently when she talked about very slow increases in rates starting sometime this year. So, how far will the Euro fall? It may simply depend on the competitive devaluation contest going on among major economies. Competitive Devaluation The issue of how far the Euro will fall may simply be a matter of how cheap the Europeans, and everyone else, want to make their currencies. The New York Times writes about a Stronger Dollar in a Weak Global Economy.

1. B y w w w . F o r e x C o n s p i r a c y R e p o r t . c o m
How Far Will the Euro
Fall?

2. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
The European Central Bank has
started its quantitative easing program
and the US Federal Reserve is
promising to raise interest rates.

3. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
The only question left is how far will
the Euro fall?

4. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
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Before We Continue…

5. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
Project Syndicate asks exactly the
same question.

6. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
The US dollar is hitting new 12-year
highs almost daily, while the euro
seems to be plunging inexorably to
below dollar parity.

7. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
Currency movements are often
described as the most unpredictable
of all financial variables

8. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
But recent events in foreign-exchange
markets seem, for once, to have a
fairly obvious explanation

9. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
One that almost all economists and
policymakers accept and endorse.

10. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
French President François Hollande,
for one, has ecstatically welcomed the
plunging euro

11. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
“It makes things nice and clear: one
euro equals a dollar,” he told an
audience of industrialists.

12. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
But it is when things seem “nice and
clear” that investors should question
conventional wisdom.

13. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
A strong dollar and a weak euro is
certainly the most popular bet of
2015.

14. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
So is there a chance that the
exchange-rate trend may already be
overshooting?

15. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
Will the combination of a EU stimulus
program and higher US interest rates
be the only factors that drive the USD
EUR pair?

16. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
What happens as a strong dollar
weakens US exports?

17. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
A Strong Dollar: the Bane
of US Exporters

18. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
According to The Wall Street
Journal major U.S. exporters are
already hurting because of a stronger
dollar.

19. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
The stronger U.S. dollar has hurt
exporters and could dampen their
investment plans for next year, top
business executives said in a new
survey.

20. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
Two out of three big U.S. exporters–
those with at least one-fourth of their
total sales overseas–said the
appreciation of the dollar has had a
negative impact on their businesses.

21. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
And nearly one-fourth of big
exporters said they have reduced
their capital spending plans as a
result.

22. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
“We are in a midst of an ugly contest
to see whether the Eurozone, Japan
or Canada can depreciate the most
against the U.S. dollar, and China is
probably next,” said Campbell R.
Harvey, a professor at the Duke
Fuqua School of Business and a
founding director of the survey.

23. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
“U.S. exporters are being punished by
these competitive depreciations and
this will lead to lower profits and less
employment.”

24. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
And lower profits and less
employment will put the brakes on
any significant raises in interest rates.

25. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
Fed chairman Yellen said as much
recently when she talked about very
slow increases in rates starting
sometime this year.

26. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
So, how far will the Euro fall? It may
simply depend on the competitive
devaluation contest going on among
major economies.

27. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
Competitive Devaluation

28. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
The issue of how far the Euro will fall
may simply be a matter of how cheap
the Europeans, and everyone else,
want to make their currencies.

29. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
The New York Times writes about
a Stronger Dollar in a Weak Global
Economy.

30. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
Like any major move in the financial
markets, the strengthening of the
dollar has unnerved investors and
policy makers.

31. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
Some, like the governor of the Reserve
Bank of India, Raghuram Rajan,
have complained that we are in the
“age of competitive devaluation and
beggar-thy-neighbor policy.”

32. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
He and officials in other countries,
like South Korea, are worried that
central banks have engineered the
depreciation of currencies like the
euro and the yen by printing money
and aggressively buying bonds in a
bold attempt to make their exports
cheaper.

33. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
Welcome to the world of competitive
currency devaluations.

34. http://www.forexconspiracyreport.com/how-far-will-the-euro-fall/
The problem is that no matter how
cheap on nation makes its currencies
and products, it needs buyers with
money to purchase those products.