What became clear to me on my travels was that the EUR/USD won’t collapse until the Big Money, ie Sovereigns and Real Money players, start selling. The hedge funds have been trying their best to drive the EUR lower but Sovereigns are buying dips and the Fixed Income market, which one would expect to be selling EUR, hasn’t been doing so. Whilst they have been selling Southern European debt, they’ve been simply switching into Northern European debt, with no impact on the EUR. Until such time as something happens which makes the US Treasury market more attractive than Bunds etc, then the Fixed Income flows which are so important for their macro impact, will not be on the move.