In the context of currency exchange rates, there are several theories that help explain how exchange rates are determined. One of these theories is the concept of 'Parity Conditions', which includes the Law of One Price and Purchasing Power Parity (PPP). Understanding these concepts is crucial for predicting how exchange rates adjust over time.

Consider a situation where the price of a basket of goods in the United States is $100, and the same basket of goods in the European Union is €90. If the current exchange rate is 1 USD = 0.9 EUR, what does this imply about the potential movement of the exchange rate according to purchasing power parity?