Currently nominal interest rates in Europe are higher than in the states. Why isn’t Euro depreciating?
Parity holds over the long term. Any deviations in the short term are helpful in deciding the direction of the currency movement in the future.
Because our dollar and our economy are f’ed. Edit: Isn’t Bernanke in charge of the F’ed?
The same with CAD - rates higher than in the States and yet, CAD has been running circles around USD for the past two years.
The Euro is depreciating… just not against the USD but that’s a whole different story.