Ruh Roh, The Euro Is Erasing All Of Its Gains

First, it just seemed strange how the euro rallied on news that the E.U. would be using massive amounts of new loans to paper-over the PIIGS’ problems, without addressing core underlying problems. Then the euro started to slip. Well it’s continued, and the euro has now lost all its gains since gapping up after the E.U. bailout fund was announced. We think it could be headed back to the pre-announcement level fo $1.27 as well.

Chart

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.