GO
Loading...

Enter multiple symbols separated by commas

Poll: Is the Euro Overvalued?

Greece's government says it will miss its budget targets set just months ago in a massive bailout package. The country now projects a fiscal deficit of 8.5 percent of GDP for this year, even as the government announced it will begin reducing public sector jobs by 30,000. It's just the latest piece of bad news on Europe's ongoing debt crisis.

In Asian trading, the Euro hit an 8-month low versus the U.S. dollar. But at 1.33, the Euro is still considerably higher than its 2011 lows of 1.29 reached in January of this year. It's also much higher than the lows of 1.1917 in June 2010.

Analysts are now predicting the European Central Bank (ECB) will be forced to cut interest rates as it seeks to help the euro zone economy. That in turn will lead to a further selloff in the Euro. Ashraf Laidi, the CEO of Intermarket Strategy expects the Euro to drop to 1.29 by year-end and to 1.18 by early next year.

Tell us what you think.

Vote
Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.

Contact Asia News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Asia Video

  • Why the euro isn't falling further on Greece

    Vassili Serebriakov, currency strategist at BNP Paribas, says the euro has become a funding currency which means it is now negatively correlated with risk.

  • After 'No' vote, Greece will still blink first: PIIE

    Even though the Greek government has a mandate now, the Eurogroup holds the key to financial aid so Greece has to blink first, says Angel Ubide, senior fellow at Peterson Institute for International Economics (PIIE).

  • Don't lose your cool over Greece: Expert

    While Wall Street will reopen to volatile trade on Monday, Masood Vojdani, founder of MV Financial, advises U.S. investors to stay patient as the Greek situation will likely be resolved soon.