Investors Bet on Euro as Greece Falters

May 21, 2012 Debbie Jacobs In the News

Though the euro has managing to keep above water throughout one of the worst financial crises in history, investors are now betting on its downfall if Greece truly is removed from the equation.

Alan Ruskin of Deutsche Bank AG explained: “Financial markets’ great fear is that if one country left, it would not necessarily be the last. Removing one country, however weak, would not be a route to a stronger common currency.”

Throughout the leading trading firms, the euro’s year-end estimate falls between $1.44 and $1.15. According to Deutsche Bank, it will slide to $1.25 in June, and rebound to $1.30 by the end of 2012. It has fallen dramatically as the efforts to establish a ruling coalition in Greece have faltered.

“Having the history of an exit would make the market think it can happen again,” said Greg Anderson of Citigroup. “That would lead to endemic weakness.”

 

Citigroup, Deutsche Bank, Euro News, Greece, Hedge Funds,

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