“According to the latest survey of funds by Bank of America-Merrill Lynch, the risks related to the fiscal cliff in the US are seen as greater than those of the eurozone,” Mourier said.
Fitch said that US money market fund exposure to eurozone banks was still down by 70 percent from May last year, and unlikely to ever fully recover due to fundamental changes in the market.
Eurozone banks had depended on US money market funds for access to dollars to carry out business denominated in the US currency, but when this access dried up European banks largely moved out of dollar denominated activity.
Pressure to meet higher core capital ratios have also encouraged eurozone banks to sell off assets and retrench their activities.
Foreign investors also remain concerned about the dim near-term economic outlook in the eurozone.
“The eurozone will be in recession next year in contrast to the US,” Defossez said, adding that next year is full of political risk given elections in Germany and Italy.