Analysts Suggest Euro Could Reverse Gains

The euro has enjoyed a strong rally so far this summer. It has quietly gained on its early summer low of $11.8, and recently surpassed $1.30. Despite the recent strength of the euro, several investment firms have gone public with predictions that the euro rally is unlikely to last.

BNP Paribas for instance, suggests the euro could end 2010 at $1.08. One school of thought, is the possibility of an upswing in carry trades using the euro to finance the purchase of higher-yielding currencies.

Source: Reuters

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