Euro Weakness Wanes as Draghi Spurs Traders to End Bear View - by Liz Capo McCormick, Emma Charlton and Lukanyo Mnyanda

The world's biggest banks are less pessimistic about the euro as the European Central Bank provides unlimited cash to the region's financial system, Germany may avoid recession and Greece looks to complete the biggest sovereign debt restructuring in history.

Strategists at Bank of America Corp. and Morgan Stanley raised their estimates for the euro this month, as the median estimates of more than 50 strategists surveyed by Bloomberg increased for the second and third quarters. The 17-nation currency is up about 1.3 percent from an almost 10-year low on Jan. 16 against nine developed-market peers.

While the crisis that led to bailouts of Greece, Portugal and Ireland and the restructuring of Greek debt caused the euro to weaken 8.7 percent versus the dollar since August, traders who predicted a breakup of the single currency are being silenced. ECB President Mario Draghi gave banks more than 1 trillion euros ($1.31 trillion) of three-year loans in December and February, and German business confidence rose to a seven- month high. 

Euro Weakness Wanes as Draghi Spurs Traders to End Bear View