The euro plunged to an 11-year low on Thursday, after the European Central Bank announced that it would begin a 60-euro monthly asset purchasing program. But it could still have a ways to fall.
Brown Brothers Harriman global head of currency strategy Marc Chandler predicts that the euro, which fell as low as 1.1362 on Thursday after trading near 1.4000 in May, is heading below 1.0. That widely watched level is the point at which it will just take a single U.S. dollar to purchase a euro, a condition known in the currency markets as "parity."
"The divergence between the ECB, the [Bank of Japan] easing policy more, and the Federal Reserve—even if you don't fully accept my view that the Fed raises rates in the middle of this year, no matter how you slice it, the Federal Reserve will raise rates well before the ECB and the BOJ—I think that this pushes the euro well below parity next year," he said Thursday on CNBC's "Futures Now."
"I think about where the euro fell to back in the early part of 2000, 2001, we were down below 0.9. And I think that that's where we should be thinking that we're headed again," Chandler added.
In fact, Chandler maintains that even though the dollar has already made a huge move, "we're still in the early stages of a multiyear dollar bull market."