Euro Rebounds After Decline, but Forecasts Remain Pessimistic

The euro rebounded today after the yesterday’s drop despite the forecasts about possible decline to parity with the U.S. dollar and the threat of the break-up of the Euro-zone.
The concerns remain, nevertheless. Unexpected Germany’s decision to ban naked short selling showed that the European Union’s nations don’t have the single policy to deal with the problems in the region. And without the unified strategy the Euro-zone has little chance to survive.
The analysts say that the European Union should choose between the fiscal unity, which would allow the European nations to intervene in each other’s budgets, and the disintegration of the Euro-zone. The EU policy maker aren’t planning to support the shared European currency, which means that the euro may fall to $1.10 by the year’s end.
EUR/USD traded today near 1.2227 as of 3:52 GMT after opening at 1.2172. EUR/JPY traded at 110.08 down up from the opening price 109.43.

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