Euro Implosion?

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Includes: AUDVF, BMWYY, DDAIF, EU, FXE, VLKAF
by: John Lounsbury

We are all aware of the problems for the Euro over the last two months, but this graph from the 5-Min. Forecast really brings the facts home.


The 5-Min. Forecast quotes Rob Parenteau as saying this is prelude to major banking crisis. Parenteau is predicting Euro/$ equivalency will result. He says we are on the verge of a Eurozone implosion.

However, we are still a long way from the exchange rates of a decade ago. The following graph from www.tititudorancea.com shows the Euro as low as 0.825 to the dollar:

Click to enlarge

The biggest direct effect of the rapid depreciation of the Euro against the dollar is likely to be in international trade. Chinese and American goods will become more expensive in Europe and European goods cheaper in the rest of the world.

Will Americans be buying BMWs, Mercedes, Audiis and VWs at 25% discounts?

Disclosure: No positions.