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Even Europe’s Draghi-Led Market Euphoria Can’t Buoy the Euro

  • Italian bond gains clash with euro’s two-week decline
  • Euro will likely fall to $1.17, Aberdeen Standard’s Athey says
Mario Draghi

Mario Draghi

Photographer: Roberto Monaldo/LaPresse/Bloomberg

European bonds gave Mario Draghi a seal of approval last week. The euro suggests he’s not quite the silver bullet for the region’s challenges.

As Italy’s debt markets were breaking records off the back of Draghi’s appointment as Premier-designate, the euro endured a second week of declines and fell below $1.20. It’s a sign that the currency bloc’s problems may be more ingrained than the fate of its third-largest economy.