Hayes predicts euro-yen drop to 140 or below by mid-2027, citing US Treasury strategy to boost dollar liquidity

Writing from Patagonia, Hayes says his key macro indicator is EURJPY, which he expects to fall from about 185 to 140 or below by June next year, signaling a large boost in dollar liquidity. He argues Treasury Secretary Bessent is deliberately pushing investors to sell euros and buy yen, having sold euros from the Exchange Stabilization Fund. Hayes contends France is the eurozone's weakest credit—now the largest Target2 debtor with roughly 60% of its €3 trillion debt held by foreigners—making capital controls and the currency's eventual collapse likely.

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