Did Jean-Claude Juncker Just Declare Currency War?
Some flashing headlines out of Reuters on what could be the first shot in the Transatlantic currency war. In a nutshell: Europe put a top in EURUSD at 1.40. As usual, Goldman's revised call for a EURUSD to 1.55 top ticked the market. From Reuters:
The euro erased gains against the dollar in early New York trade on Friday after Eurogroup Chairman Jean-Claude Juncker said he was not happy with the euro zone single currency reaching $1.4000.
Juncker also added that the EUR is too strong, and the weakness of the dollar is not in line with economic fundamentals. Perhaps not, but it sure is in line with monetary ones. We just hope Benny and his Inkjets will be willing mercenaries to kill the European currency (for a price), after they are done with ours.