Given the run of bad news stories on the EFSF overnight one could be excused for thinking why isn’t EUR much lower this morning. I think the answer lies somewhere between the fact that the market is sick and tired of EU mutterings which sees risk flip flop on each headline but goes nowhere overall and perhaps what we could call unintended consequences. The big talk of the last fortnight has been the recapitalization of EU banks . There are more than a few analysts now suggesting that banks will baulk at the need to take on fresh capital and will do all in their power to run down their balance sheet. For many this will mean dumping offshore assets and to bring the money home. So whilst the Euro might dump on a disappointing solution to the sovereign/banking debt problem there might be a lot of willing buyers to soften the Euro’s slide.