If the ECB sits on their hands Thursday, RBS’s Greg Gibbs says that the euro may hold its ground for a while longer . Further out the news isn’t so great after the cash rates dropped below zero changing the key tone in the euro.
“We expect the EUR fall to intensify as rates become more significantly negative”
“My view on the EUR remains that it is likely to fall much more, and I think parity to the USD is a feasible target in six months.
EFX has the story and the bank trades which you can try out here
Does anyone think that parity is a possibility or a stretch too far, even with ECB sov QE?
