Forex Flash: Further EUR weakness expected - RBS

Since political uncertainty in Italy is set to continue, RBS currency strategist Greg Gibbs, thinks that "periphery spreads in Europe should widen significantly and contagion builds significantly further."

Greg adds: "Perhaps the move will be less severe and more gradual, but it is hard to see a case for stability. As such, the risk is greater than we move into a mores sustained period of risk aversion. This should see another large perhaps persistent wave of EUR weakness, weaker global equities and a generally stronger USD."