Now it's the euro's turn for an ugly spell

In 2007 the forex market marked down the dollar. Late last year it focused on the pound. Now it seems it's time for the euro to come under the cosh.

In 2007 the forex market marked down the dollar. Late last year it focused on the pound. Now it seems that the "ugly currency baton", as David Simmonds of RBS puts it, has been passed to the euro. The single currency has fallen by around 13% to a three-month low of under $1.27 this year.

One major problem for the euro is that the eurozone downturn has been nastier than expected. Germany's economy is shrinking faster than Britain's and America's, with GDP down by an annualised rate of over 8% in the fourth quarter. French manufacturers' confidence is at a 47-year low.

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