Barclays now sees a more protracted and significant slide in the EUR and has revised accordingly its EUR forecasts substantially lower over a 12-month horizon. "While our recent forecasts for EUR depreciation have proven accurate, the deterioration in the euro area economic and inflation outlook and the European Central Bank’s (ECB) response to it lead us to expect more substantial depreciation," Barclays argues. "We expect this to be a multi-year trend, returning EURUSD to lows not reached in more than a decade. As a market consensus develops about this idea, we expect already negative hedging costs at a multi-year ... (full story)