Posted On: April 10, 2012
The embattled shared currency of the European Union is projected to lose value as the sovereign debt crisis is poised to snare Spain and Italy, two of the euro zone's larger economies, accurate forecasters told
Head of currency strategy Nick Bennenbroek with Wells Fargo predicts the monetary unit will lose 5 percent of its value by the end of this year. The first quarter, when the currency achieved its top gain in one year, will prove to be for naught.
"One of the reasons the euro gained was that we saw some progress in the European debt crisis and some improvement in European bond markets, and we're near the end of that," Bennenbroek told Bloomberg earlier this month. "The euro will weaken further as slow to no growth weighs on sentiment and as ECB actions continue to weigh."
The struggles of Spain and Italy pulled down the value of the euro on Tuesday, according to
The Wall Street Journal.
Spanish bond yields on 10-year notes climbed to their highest rate since the end of last year amid investors concerned about the government's capacity to close the nation's budget gap.
Category: Industry News
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