Euro to Drop to $1.20 This Year: FX’s Taylor

John Taylor, founder and chief executive officer of FX Concepts LLC, said the euro will end the year at $1.20 before falling to parity with the dollar as the currency union struggles through a sovereign debt crisis. Taylor, who restated his call for another recession in the U.S. and Europe, said the common currency has remained supported in the past week as leaders pledge to deliver a plan to support banks amid the crisis. Taylor, based in New York, runs the world’s biggest currency hedge fund. “I would be surprised to see the euro hold above $1 through this crisis,” Taylor said in a Bloomberg Television interview with Michael McKee. “It’s not over. The banks are going to be in trouble when Europe goes into a recession next year.”

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