Bundesbank President and the potential next president of the ECB (not bloody likely, given Germany’s lone-wolf stance on Greece..) Axel Weber says :

  • Economic divergences within the euro zone need addressing.
  • Countries that have lived beyond their means need profound, far-reaching reforms
  • Risks from divergence imply lower growth for less competitive countries
  • Risks include disturbances in capital flows if markets doubt sustainability of external borrowing (ie higher Greek interest rates)

A timely topic, Herr Weber. He laid out the disease, but not the cure. No one has…To the detriment of the euro.

EUR/USD is consolidating at 1.3475.