Uncontrolled current-level depreciation could permanently unde | FxPro

Uncontrolled current-level depreciation could permanently undermine the euro's status as a reserve currency, quickly translating into higher debt-servicing costs.

The debt problem is bad news for the euro. History is also not on the side of the buyers right now. In previous episodes of overcoming parity, it was not a turning point but only a temporary stopgap. Fundamentals are also on the bears' side for now. Because, despite the attention on the euro exchange rate, the ECB is moving slower than Fed in policy normalisation and much further away from the point where policy becomes neutral.