Today, the dollar hit its highest point in almost seven weeks versus the euro on speculation that the Fed will leave interest rates unchanged.

The euro fell as far as $1.5464, its lowest point since June 18.

The dollar’s climb could be a sign of things to come says DailyWealth editor Steve Sjuggerud.

In DailyWealth, Steve says that the euro is now “extremely overvalued” versus the euro - a full 50 percent overvalued, in fact.

A concrete example of this is The Economist magazine’s Big Mac Index. This is an informal way of measuring the purchasing power parity (PPP) between two currencies.

According to The Economist, early 1995 was the last time a Big Mac was 50% more expensive in Europe than it was in the US. And as Steve points out, “The last time Europe’s currency got this expensive, it crashed by nearly half.” 

Steve says it’s time to make a safe wager. “Bet against the euro while it’s extremely overvalued and get out in two years or so. The euro will probably still be too expensive, but it’ll be a lot cheaper than it is now.”

The fundamentals aren’t exactly rosy for Europe either.

Britain’s The Guardian newspaper reports today that the eurozone’s economic outlook “received fresh blows today from falling services sector morale [...] boosting expectations that the European Central Bank will leave interest rates on hold.”

And separate data showed eurozone retail sales saw their biggest ever annual fall in June, confirming that high prices of energy and food are hitting people’s spending power.