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Traders Expect Bad Q4

The euro and other currencies are expected to be weak in Q4 2011.

While recent market activity and political developments have silenced many analysts' warnings that the economy is headed toward a double-dip recession, it has done little to ease traders' worries as they head into the fourth quarter.

A report from FOREX.com analysts revealed that

While recent market activity and political developments have silenced many analysts' warnings that the economy is headed toward a double-dip recession, it has done little to ease traders' worries as they head into the fourth quarter.

A report from FOREX.com analysts revealed that many traders expect economic-growth prospects to crumble over the coming months.

"While we are always cautious about expressing too extreme a degree of pessimism, we don't see a lot on the fundamental horizon to encourage much optimism," stated Brian Dolan, chief currency strategist for FOREX.com. He pointed to "the key fundamental drivers" such as consumer/business deleveraging, continually anemic housing markets, persistent unemployment rates as some of the "sources of weakness," adding that it was unlikely for any of those areas to improve much in the near future.

The report also pointed to ongoing political struggles around the world as additional causes for concern. As European leaders work through the financial crises on their continent and U.S. lawmakers spar over the jobs bill and tax cuts, markets will continue to suffer.

On the currency exchange front, FOREX.com predicts that investor will aim to mitigate some of their risks by moving from the euro and British pound sterling the the U.S. dollar.  

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