Euro drops for third-straight session against greenback

Posted On: August 09, 2012
The value of the shared currency of the European Union slipped against the U.S. dollar for a third consecutive trading session on Thursday, according to Bloomberg.

Drawing down the euro on Thursday was a European Central Bank survey of economists indicating contraction in the 17-nation bloc will be worse this year than previously predicted. The 2012 growth forecast slipped from 1 percent to 0.6 percent, according to the ECB survey.

"The situation in Europe remains uncertain and the data has been weaker," currency strategist Bernd Berg with Credit Suisse Group AG’s private banking unit in Zurich told the news source. "The euro should go lower."

Reuters reports slipping optimism about policy makers' abilities to challenge the sovereign debt crisis also dragged down the euro on Thursday. The embattled monetary unit also performed weakly against currencies of the Scandinavian nations.

The European Central Bank is projected to resume the bond-buying program as part of the effort to slash high borrowing costs in Spain and Italy. But the body did indicate on Thursday in its monthly bulletin that many downside risks exist with the region's economic outlook.

Category: Industry News

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