Europe is setting off a deflationary spiral, famed hedge fund operator George Soros says by insisting on fiscal discipline to early in the economic cycle. The euro is here to stay, he says, but it is too early to declare victory.
German is unlikely to recognize that it is leading the euro zone into deflation as its economy is doing well, he says.
EUR/USD is consolidating gains above 1.3818, the March 17 highs and below session highs of 1.3852. 1.3894 is the next topside target for the bulls, the 61.8% retracement of the slide sparked by the Greek crisis late last fall.
