Implications for the Euro going forward -- Will Lithuania Make a Difference?

Discussion in 'Forex' started by piezoe, Jan 5, 2015.

  1. piezoe

    piezoe

    Draghi wants QE, Germany Opposes. Draghi is hampered by lack of a Euro Bond. Deflation threatens Germany. Will Lithuania joining the EU, thus affecting ECB voting, allow Draghi to get his way? Will the threat of deflation in Germany weaken German resolve?

    Just to make this more fun, I shall make a prediction. Draghi will ultimately get his way. (Human nature is on his side! And I never want to bet against human nature.) Euro weakening along with dollar strengthening will result in the Euro trading at parity with the U.S. dollar. I originally thought this might occur as early as this past Fall or winter, but greatly underestimated German recalcitrance.

    http://www.bloomberg.com/video/lith...s-loss-at-the-ecb-ckLMMzirTXOHolw2kCmG9Q.html
     
    Last edited: Jan 5, 2015