2012.05.09 17:52:30 MARKET TALK: Euro-Zone Economy To Keep Pressuring Currency

11:52 (Dow Jones) The euro zone's rapidly weakening economy, which even includes core countries, is going to put pressure on the euro, says Paresh Upadhyaya of Pioneer Investments. He contends the little, if any, growth throughout the currency bloc is bound to help push the euro lower against the dollar because it will force the ECB to ease policy further, moving the euro closer in line with other major central banks and thus removing one of the few things supporting the euro right now. Meanwhile, Upadhyaya says $1.2828 is the next level to watch on the downside as it's a key retracement level. Beyond that, the next big figure would be the 2012 low of $1.2624. The euro is at $1.2949, compared with $1.3005 late Tuesday, according to EBS via CQG. (stephen.bernard@dowjones.com) Call us at (212) 416-2354 or email kevin.kingsbury@dowjones.com (END) Dow Jones Newswires May 09, 2012 11:52 ET (15:52 GMT)