Nomura's Jens Nordvig expects the euro trade in the $1.25 to $1.30 range for the remainder of the year, but is "reluctant to chase the downside momentum right here." Nordvig expects the euro to break to the downside of that range sometime in 2013, but if Spain applies for aid in the meantime, it could generate a short-term rally for the common currency. The $1.25 to $1.30 estimate for the rest of 2012 is based on improved funding market conditions seen in the euro zone since July balanced against a continued deterioration of economic conditions over the past couple of months, Nordvig says. The euro is at $1.2706, down about 0.7% on day, according to EBS via CQG. The euro traded at a two-month low of $1.2661 earlier in the session.
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