Banking strategist Peeter Koppel said the euro's depreciation against the US dollar, which could soon lead the common currency to drop below the dollar, is explained by the simple fact that Americans are doing better economically than Europeans.
The reason behind the weakening euro is that the US began its money printing operation earlier and have already finished the program while the Eurozone is just getting started, Koppel, who works for SEB, said on ETV on Tuesday.
“They have something which can be called economic growth – something that Europeans have not even dreamed of for a while,” he said.
Speaking about the European Central Bank's quantitative easing program, Koppel said it will not lead to less money in people's pockets as prices have been flat for a few years.
He said goods sold by US companies are likely to see a price increase, such as Apple Computer products, or anything from US-based online stores.
“If we think about what we buy in dollars then the simplest answer is fuel. Everyone knows the price of oil is dropping but if the euro weakens faster than the price of oil then that will mean higher fuel prices for us,” Koppel said.
Editor: J.M. Laats