When it comes to the currency race to the bottom, I think that this is actually a race the ECB is going to lose. They will react to the currency appreciation as the last press conference signaled but I don't see we are going to have any material act as a rate cut until the euro is at a substantially higher level. There is one major difference between the euro and the other major currencies of the world - the dollar, sterling, and yen: the eurozone is depreciating internally via wages; everybody else is trying to depreciate externally via their exchange rate. So, the eurozone can survive with a strong currency ... (full story)