Tags: euro | plunge | 10 | percent

Hedge Fund Titan: Euro Will Plunge Another 10 Percent

By    |   Thursday, 01 Apr 2010 09:00 AM

Europe’s economic woes will continue to weigh on the euro, sending it down to $1.20, says John Taylor, CEO of FX Concepts, the world’s largest currency hedge fund, which manages $9 billion.

“There’s nothing really good happening in the euro at all. The economy’s weak, and you have the southern European countries falling apart,” he says.

Taylor sees the euro hitting $1.20 by August. Others have predicted a stronger move, saying the euro will reach parity with the dollar. It recently traded at $1.35.

But Taylor notes that the euro already has dropped 12 percent since the beginning of December. “You’re really pushing it there” to call for parity, he told Bloomberg.

It will be very difficult for the euro to reverse its slide, Taylor says.

“In many ways the euro is mis-formed. It can’t continue to exist like it is. But you have the Germans saying this is going to stay right where it is. There really isn’t a solution. The weak euro is a very easy forecast.”

It’s not that Taylor is gung ho on the dollar, given the United States’ travails. But, “You have to pick the least ugly thing out there. You don’t have any other choices.”

Investment star Jim Rogers is even more pessimistic on the euro.

"The euro will probably break up in the next 15 to 20 years," he told CNBC. "We've had currency unions in history. They didn't survive, and this one won't survive either."

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Europe s economic woes will continue to weigh on the euro, sending it down to $1.20, says John Taylor, CEO of FX Concepts, the world s largest currency hedge fund, which manages $9 billion. There s nothing really good happening in the euro at all. The economy s weak, and...
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Thursday, 01 Apr 2010 09:00 AM
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