The euro was seen strong against the dollar as investors booked profits a day after the currency hit its lowest level against the dollar. On the other hand the pound fell after a ratings agency urged Britain to cut its deficit.
I still believe that EURO is yet to see a worst time and probably undergoing retracement but once the currency restart to fall on Greece debts. and other EURO-Zone problems, I believe it will go towards 1.15 first against EUR/USD and if it breaks that level then 1.10 can be possible too.
The fate of the euro very much depends on Russia. This seemingly paradoxical statement can be easily explained. The situation in the world currency market is such that if one large euro-holder makes a careless move the common European currency together with the whole of the European Union can be dealt a lethal blow.
The current situation with the Euro shouldn’t be dramatized. The Euro can drop more due to alarms concerning the budget deficit of some EU member states but this drop will be insignificant.