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.
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