Citigroup (NYSE:C) said if support for the euro weakens, it could drop by 4 percent against the US dollar as a result. That level hasn't been experienced since July if it happens.
Renewed focus on Europe and its dubious stress tests of banks has been the impetus behind the fall in the Euro to its lowest level so far in September, and is sure to continue to fall as support crumbles.
Citi analyst Tom Fitzpatrick, said in a note to clients, “There is still another move down coming on the euro. The euro has come under renewed pressure in the short term as a result of focus again on European banks and sovereign spreads.”
Fitzpatrick added, if the euro falls below the support level of $1.2588, it may fall as low as $1.22.
Nobody should allow themselves to be lulled to sleep by the financial mainstream media coverage of the European sovereign debt crisis, as it's very real, and much worse than being admitted.
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