According to Bloomberg today, the Euro is set to a weekly drop among its major peers as the 17-nation currency has the weakest growth prospects globally (Weber, cited in Sharif, 2012).
The Euro maintained a 2-day decline versus the Dollar after reports on manufacturing and unemployment reports yesterday contributed to the fact the European debt crisis is hurting the overall economy (Kondo & Yui, 2012).
“The European economy is already in a recession, and the only question is how bad the recession gets,” said Robert Rennie, chief currency strategist in Sydney at Westpac Banking Corp. (WBC), Australia’s second-largest lender. “We do not have a growth plan in Europe. That certainly weighs on the euro" (Kondo & Yui, 2012).
Also, the Yen and Dollar are set to weaken.
According to John Taylor, founder of currency hedge fund FX Concepts, told Bloomberg that the yen is “the ugliest of the ugly.” He said Japan is in a situation which is “really not very pretty" (Kondo & Yui, 2012).
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