The euro is hovering close to the crucial 1.20 level against the dollar – and analysts warn it will fall even further without further intervention by euro zone authorities. The currency could sink to 1.15 or even 1.10, Peter Whitley, senior FX analyst at Thomson Reuters, told CNBC's "Capital Connection" Tuesday. "The downside has picked up steam and rallies are scarcer and scarcer," he said. "Spain is the main focus - everything else is secondary. The ECB seems to have too many balls in the air. If the euro goes through 1.20, there's not much stopping it on the downside." The possibility thatSpain may have to seek a full bailout rather than a bailout of its banking system has sent tremors through European markets this week and pushed Spanish 10 year bond yields above the alarming 7.5 percent level (related:the world's biggest debtor nations). Tuesday's flash euro zone PMI data suggested that the recession will continue, adding to the gloom around the region. ... Continue to read.
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