On Thursday morning, the European Central Bank surprised markets with a raft of stimulative measures including cuts in interest rates and the commencement of asset purchases.
The news sent the euro currency much lower, but currency expert Boris Schlossberg of BK Asset Management identifies another reason why the euro could call even further: fresh concerns over a European Union breakup.
ECB president Mario Draghi, in announcing the measures, mentioned that the vote was not unanimous. The strongest economy in the eurozone, Germany, is widely expected to have dissented.
"It's a very, very tenuous union in many ways, and we see the conflict come to the forefront anytime we have these issues," Schlossberg said Thursday on CNBC's "Futures Now."
At this point, German unease over ECB stimulus "could become a very, very serious problem," he said. "We'll be watching the conflict very carefully in the fall and into the winter to see just how serious the Germans are in their opposition to this move."
Ironically, Schlossberg notes that it was the very reticence of the Germans that forced the ECB into action.
The central bank is "the only institution within the eurozone that is able to act in concert. There is is simply no other way for Europeans to stimulate growth, because they have all these disparate governments with different points of view."
But while Schlossberg expects the euro/dollar to fall all the way to 1.2850, he does note that it is "extremely oversold," and could bounce in the near-term.