DislikedTodays move is purely positioning matters. ECB has just eased more, cut depo rate, signaled an open ended QE. Today as well Yellen signaled that a rate hike is a done deal on december. Despite the fact that ecb has disappointed the market, the market is known for overshooting, the market expectation of massive easing package was as well overshooting, as well as the move today. Everything happend today was euro negative, yet the move was only related to short squeezing. the fact is euro is overvalued above 1.1 and it is undervalued below 1.05. No...Ignored
Value > Swap rates (the differential is too small to mean anything right now)
Now, at 2% rate differential between USD and EUR we can talk again about a EURO below parity.
Something like a 1.5% USD and -0.5% EUR will put me in the EUR 0.90 crowd (as fair value, with 0.80 as possible overshoot)
Be hopeful in a winning position, and fearful in a losing position.