DailyFX Still Bearish on Euro

DailyFX's currency analyst David Son is out with a research report on the Euro, and still remains bearish on the currency.

In a note to clients, DailyFX writes, "The Euro struggled to hold its ground on Friday and the single-currency may weaken further in the days ahead as the central bank talks up speculation for additional monetary support. Indeed, European Central Bank board member Luc Coene said that the Governing Council may act next month should economic conditions in the euro-area deteriorate further, and the central bank may show an increased willingness to expand its nonstandard measures as the ongoing turmoil within the financial system bears down on the real economy. At the same time, we may see the ECB reverse the rate hikes from earlier this year as the region faces an increased risk of a double-dip recession, and the increased reliance on the central bank may continue to instill a bearish outlook for the single-currency as European policy makers struggle to restore investor confidence."