Just as predicted, euro has fallen from its too high levels of above 1,3230. The real reason is not the bad unemployment news, but the general strategic fundaments against the EU currency. The unemployment statistics results were not unexpected, so they were already calculated in investors' decisions. But now they became a trigger for just waiting bearish powers to make a mass sell of Euros.

Generally the EU economy is not in good situation. The union has deep structural problems with too regulated business environment and too heavy and expensive social system. And there is no serious reforms planned. In fact soon is possible even a reversal of current weak and palliative reforms like the Fiscal Pact. So it is logical and expected for unemployment to continue rising in future. Along with stagnating economy the Euro will lose value, as at the moment it is seriously over valuated.

I think this year we will see Euro at $1,20 and even lower. May be even in current quarter...

Dobri
May 2nd 2012