The euro bounced on Monday but will euphoria generated by the $1 trillion bailout be short-lived?
From what we can tell, the consensus suggests the euro isn’t going to make any appreciable moves to the upside anytime soon.
According to a Reuters poll, analysts continue to pare back forecasts for the battered currency.
The poll of 58 analysts, taken April 29-May 5, predicted the euro would slide to $1.28 in a year. By contrast in a similar poll taken in February's the euro was only expected to be at $1.40 in a year.
In a Bloomberg report, Mansoor Mohi-uddin of UBS says "the euro will definitely hit what we call its long-term fair value at $1.20 and it may easily overshoot that if difficulties in Europe persist. The policy mix in Europe is becoming very unfavorable to the currency.”