German Chancellor Merkel says that Europe needs a strong Euro during the crisis. This is undoubtedly true i that confidence in the entire European experiment would be gravely undermined if the euro to weaken significantly at a time when individual members of the Eurozone are under financial stress. She added that the EU needs a consolidation phase before further enlargement. (That will be a relief to the market, I’m sure. The non-members who would like to join would not bring much to the table.)
EUR/USD is ticking up on the comments, now at 1.3015.
Another layer of stops are gathering in the 1.2965/75 region, dealers report.
