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Daniel Lacalle, Daniel Lacalle, questions whether the euro-dollar exchange rate could reach a new all-time low, citing rising dollar demand, increasing eurozone debt concerns, and a narrowing trade surplus.
He describes this as a bearish backdrop for the euro and considers a weaker euro plausible, but also states that the reserve currency status is not under threat.
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Lacalle recently questioned European Central Bank officials as bond yields climbed and Christine Lagarde argued that bond selloffs could help curb inflation, according to a prior report. He has also warned that a potential German exit from the euro could trigger major bankruptcies and threaten European financial stability, as detailed in an earlier article. These concerns provide additional context to his outlook on the euro's prospects.