Yeah, you read this correctly: Volkswagen - the largest German car manufacturer - is giving its employees a 3,4% rise in salaries. http://europe.autonews.com/article/20150305/ANE/150309900/vws-german-workers-get-3-wage-increase And uncle Draghi is starting QE today! LOL! ROFL! That´s just totally crazy! You think Volkswagen is the only entity in Germany raising salaries? Nope! German teachers are demanding a 5.5% rise in pay! 5.5%! You read that correctly! http://www.dw.de/teachers-strike-in-several-german-states/a-18290659 You think, the Euro will fall further? Bullocks! Inflation is soaring back in huge steps - at least in Germany! And we all know, if it starts in Germany, it´s just a matter of time to follow through in other EU countries. Place your bets, gents, it´s time to rumble! Buying some EUR on this news. I am not calling for a bottom - but be assured we are NOT FAR AWAY FROM IT!
i don't understand your assumption. with inflation, the euro should fall against more stable currencies and not rise! stock markets will rise, commodities priced in eur will rise, bonds could also rise (but riskier), but certainly the currency will not rise with inflation! but yes i second your opinion. i live in austria and there's been a pretty noticeable inflation in the last 1-2 years. not massive as in russia, but certainly noticeable. betting against the eur myself by going long the dax. hope the eu/eur will not end in desaster, but I'm preparing for it
Buy euro or bye euro? Euro is not far from getting dismantled. Populist parties are rising in whole of Europe. If in France the right wing wins, forget about euro. This is the real reason it is falling. Anyway inflation is bad for a currency.
Inflation is back to what levels? Core inflation has been trending down from around 1.3% in mid 2011 to 0.9% in Jan 15. Why are you also assuming EZ inflation will follow Germany? Why would dollar rise against EUR if US inflation is above Eurozone? Interestingly, year on year core inflation in Austria has been persistently 0.5-1.5% above that in Germany except 2007 and mid 2009.