Quote:
Originally Posted by pornmasta
If greece stops to pay its debts, you will how politics is involved...  |
Yep, then i'll agree its politics but i'll rather call it a black swan event simply because the EU would never let that happen and they're already hinting at an extension.
The main weakness from around 1.35 to around 1.15 was due to deflation in Eurozone and therefore expectations of QE and if that's already priced in then maybe Greece adds some extra momentum but the QE is over $65 bn per month for upto 19 months and the US economy (even though hardly a recovery) is looking stronger so the USD will be getting stronger at the same time that the Euro is getting weaker.
Even though there's a low chance of US rates going up this year, if you have two cars pulling away from each other at 10 km/h the distance gained between them is at double the speed - at least that's my analogy.
I think there's a high probability of Euro/USD parity (1 USD = 1 Euro) happening this year but wouldn't it be the first time ever?