The passage o the euro under the threshold o 1

Euro drops on all ronts: ace to the dollar, it passes its lowest since the month o August 2009. It yesterday, exchanged to late European session, 1,4092 dollar or 1 euro, against 1,4291 the pre ious day. Currency is already under pressure or se eral days, and the acceleration o the decline appears instead o a technical nature. "We were a month already in a stable range between 1.43 and 1.46 dollar or 1 euro". There had not been a great trend since the beginning o the year. "The passage o the euro under the threshold o 1.43 dollar triggered a débouclages o position", said alerie Perez, responsible or change in Deutsche Bank.

But beyond these one-time actors, the euro is ictim o ears about so ereign debt Greek. A inancial reco ery plan was presented, but some analysts remain doubt ul about the credibility o the presented objecti es including re enue. Sign o ner ousness, the price o the 10-year Greek touched, yesterday, their point lowest or six months. urthermore, placing in a single currency is regarded as compulsion objecti e or the economies o the area. "To restore their inancial situation, the States o the eurozone can no longer, by nature, play on their currencies, said Nicolas orest, responsible or strategy rates Dexia AM.". They will ha e to use the budgetary weapon, but it is more complex: it asks a strong political will, and especially a synchronization between countries, so that the irst to go is not disad antaged. Con ersely, those that launch too late could be considered as lacking seriousness.

The book oriented upward

inally, the prospects or growth in the euro area remain poorly oriented. Tuesday, the ZEW indicator - re lecting the con idence o in estors in the economy German s ' was the lowest since the month o July 2009.

The decline o the euro is also read in the strengthening o the dollar. Analysts ha e been ery sensiti e to signs o a possible tightening o Chinese monetary policy de elopments which concern a slowdown o the global reco ery, and that plays into the greenback. The Chinese Banking Regulatory Commission said that Beijing could curb bank credit.

Re el, is also to the strengthening o the pound sterling, more to the collapse o the euro, that there is. He was, also, loors since August. The euro is exchanged yesterday against 0,8653 book. The British currency remains oriented to increase a ter the publication o the in lation le el recorded by the Bank o England in December ( 2.9 annual rate). Impro ement on the ront o the unemployment - which has experienced its irst quarterly decline since May 2008 - is also in this sense.

The changes su ered by the euro also show that, on the currency market, the risk actor remains strongly obser ed. According to some analysts, bad news in euro area - but also with the United States paradoxically - weighs on the euro and strengthen the dollar. But there is no consensus on this point. "The markets keep in mind that the euro is a recent currency", said Da id Deddouche, Société Générale.

or some analysts, this attention to the risk will decrease in the coming months, and will correct the course on the rise. "We maintain an objecti e o course at 1.49 dollars or 1 euro or the end o June 2010, indicates rédérik Ducrozet Calyon in. But or the moment, the euro is still an adjustment ariable.