The Euro is in absolute free fall. It wasn’t even three months ago that the EURUSD was trading at 1.32. Now, it’s inside 1.22 (1.216, as I’m writing). That’s an 8% drop in 3 months, folks.
I don’t care about market statistics, or elections, or Chinese stimulus. If the euro keeps falling against the dollar like this, it will be absolute carnage.
Even as we speak, US imports are taking it to the chest. Moreover, we have seen that this is not the sort of currency move that aids the home country, in the here and now. Perhaps, after they start to pick up the pieces, having a weak currency will be useful for the Spaniards.
But at the moment, price spikes from this wildness have the propensity to send half of Europe into cardiac arrest.
At this rate, the EU won’t be around by Christmas, and all US growth will be dead and gone.