Why Marc Chandler Is Negative on the Euro

The video discusses the impact of political risks on European bond yields, particularly in the context of upcoming elections in the Netherlands, France, and Germany. It explores the dynamics between the euro and the US dollar, noting the euro's recent correction and the widening US-German spread. The undervaluation of the euro is examined using various market measures, including PPP and OECD metrics. The discussion concludes with the potential for currency wars and the importance of allowing the foreign exchange market to determine the dollar's value.

Discuss the implications of the euro being undervalued according to various measures.

What are the potential consequences of a currency war as described in the text?