European Commission: Euro Rate Prospects Worsened

A pessimistic ECB report was followed by a rather frustrating outlook prepared by the European Commission.
The economy of the Eurozone countries is estimated to contract to 0.3% by the end of 2012 and grow by 1% in 2013.
The Eurozone GDP has been affected most by Italy and Spain. These two southern countries have been in the investor limelight recently.
To be more specific, the recessed economy of Spain is seen to be a source of negative data in the time to come. On the other hand, Italy is expected to demonstrate growth by 2013. Further decrease in the indicators is prevented by expanding exports which are likely to constitute 4.0% in Italy and 4.7% in Spain in 2013. Yet, unemployment is set to keep on rising to fresh all-time highs as the situation on the Italian and Spanish bond markets is exacerbating.
This week new rounds of Italian, Spanish and French bond auctions will take place. There are doubts whether the auctions will be a success, which has been pressing the euro. The EUR/USD pair opened with a gap of 30 points at the level of one dollar and 28.8 cent.