The Euro’s exchange rate continued to fall against the US Dollar on the very first days of 2012, and it neared the €1/$1.27 mark.

Virtually all European media covered this news and noted that the Euro reached its lowest point since the past sixteen months.  

And the following factors paved the way for the Euro’s weakening: First, the European Commission publicized statistical data, according to which a recession is starting in the European Union. Second, Greece announced of a probable default in March, in the case when close to half of the country’s debt will be canceled. And third, the profitability of the bonds of Italy, the Euro zone’s greatest debtor, exceeded 7 percent per annum.      

On Monday morning, the Euro continued to lose value, at the stock exchanges, and it reached the €1/$1.2666 mark.