I was reading today some analysis about the euro currency prospects in the incoming day somewhere on Bloomberg. And boy, the things do not look good at all.
The prospects for the Euro are grim. The analsysts said on several web stories that the European currency is supposed to go down, from their current levels of 1,26 USD/EUR to 1,25, which is a psychological level (since it has not been achieved for more than 3 months, and even then – accidentally. The reason would be the bad results of the European banks, especially those of ING.
And yet, when these were announced (one hour ago), the financial results of those banks were better than expected. Societe Generale has profits on the fourth quarter, based on a strong French retail operation, whereas ING’s losses were smaller than the forecasted $5 billion. Commerzbank AG and Carlsberg A/S have beaten the analysts estimates.
The euro climbed to $1.2617 as of 7:30 a.m. in London from $1.2582 late in New York yesterday. It earlier touched $1.2559, the lowest level since Dec. 4.