Flash: Euro depends on Fed

FXstreet.com (London) - John Norman at JP Morgan explained trend euro weakness would depend more on the Fed than the ECB.

Key Quote:

“Since rate spreads correlate reasonably well with EUR/USD over the long term but euro cash rates are already near zero, more of the rate pressure to generate trend depreciation required US rate normalisation rather than additional ECB easing. Indeed the BoJ faced the same dilemma until all stars lined up (trade deficit, fiscal easing, massive QE) for yen weakness in late 2012”.