Credit downgrades to hit euro in 2010

Storm clouds are gathering over the euro, with the currency expected to fall from the highs seen in 2009, according to Caxton FX.

The foreign exchange specialist believes fortunes could be reversed for many currencies in the New Year. Duncan Higgins, analyst at Caxton FX, says the poor economic outlook in many parts of Europe could hit the single currency, while the dollar could see a resurgence. "The story in the eurozone has become decidedly murky, with concerns over the credit rating of various countries within the region reaching the financial headlines in the past two weeks," he explains. There has been a recent downgrade of Greece's credit rating, to BBB+ from some agencies, while Spain and Ireland coul...