Bank of Ireland economist Dr Dan McLaughlin says the recent political infighting among EU members has had only a limited effect on the euro.
He points out that the euro has fallen by 11% against the dollar since the start of the year, with most of this fall taking place before the French referendum on the EU constitution.
'There is no evidence then of any capital flights from the euro area,' says the economist, but he adds that the euro is still likely to weaken.
'On the economic front the long awaited recovery has yet to emerge and the persistence of high oil prices is a negative for both business and consumer confidence,' Dr McLaughlin says.
On the possibility of an ECB rate cut, he believes the bank will not reduce euro zone rates.
