Euro to Weaken to 10-Week Lows Over Next Year, Wells Fargo Says

The euro may decline to $1.28 in 12 months, the lowest since November, as weak economic growth erodes optimism in Europe’s 17-nation currency bloc, according to Wells Fargo & Co.

The San Francisco-based bank revised its forecast from $1.24 per euro, saying that the improving bond market in Italy and Spain and less dovish language from the European Central Bank put the shared currency on a stronger footing versus the dollar than previously expected. Still, the euro represents a selling opportunity, wrote Nick Bennenbroek, head of currency strategy at Wells Fargo, in a report to clients.