Forex Forum
Aeron News => Forex Market: News/ Trend/ Technical Analysis => Topic started by: Hemant on April 15, 2011, 11:01:35 am
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Euro Forecast: Currency to Fall as Economists Suggest it May be Overvalued
The euro may fall below $1.40 after recent gains made it close to 20 percent overvalued in terms of purchasing power, according to Mizuho Corporate Bank Ltd.
The CHART OF THE DAY shows how much euro-dollar exchange rates have deviated from purchasing power parity, a measure of the cost of goods relative to other countries, in the past 10 years. The euro reached $1.4520 on April 12, the highest since Jan. 14 last year and widening the difference from purchasing power to about 18 percent.
Source: Euro Forecast: Currency to Fall as Economists Suggest it May be Overvalued (http://www.marketracks.com/forex/euro-forecast-currency-to-fall-as-economists-suggest-it-may-be-overvalued/forward/380/)