EUR/USD Drops Below 1.2770 as Analysts Expect More Falls

The euro’s drop to its lowest against the U.S. dollar in over a year may be just the beginning, with some analysts expecting the common currency to fall to levels not seen since 2003.

“The euro is vulnerable to a serious hit,” analysts at Barclays said in a note Wednesday. “We now expect a large, multi-year downtrend in the euro, following a substantial deterioration in the euro area’s economic outlook and the ECB’s (European Central Bank) aggressive response to that deterioration.”

The euro slipped as low as $1.2764 in early Asian trade Thursday, touching its lowest level since July 2013, after ECB President Mario Draghi said monetary policy will remain loose for as long as it takes to bring the euro zone’s inflation rate up to the central bank’s 2 percent target.

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