Is 1.3500 Inevitable for the Euro?

Right now, the euro is seeing some success in forex trading on the currency market, gaining against the U.S. dollar as jobless claims disappoint. However, there is speculation that the euro can only hold on for so long, and that 1.3500 is only a matter of time.

GFT's Boris Schlossberg explains in FX360 his reasoning for a grim euro forex trading forecast:

Yet the economic toll of the budgetary austerity now being imposed on EU member states is likely to stifle growth in the next several quarters and dampen investor enthusiasm for European assets. The region’s chronically weak consumer spending will likely deteriorate further under the weight of reduced government spending and increased taxation that is sure to come. Perhaps the only bright spot on the horizon is the decline in the exchange rate which should help the key export sector, but the gains are unlikely to offset the downward pressure on overall demand.

With so much going on in the euro zone, it is little surprise that another dollar rebound against the 16-nation currency is expected.