The euro is on a tear today but fundamentals are playing very little role. About the most exciting thing that can be said for the euro is that they may slow the pace of their future rate cuts if Stark has his way.

One point of pressure remains: Greece, where rioting has been going on for the better part of a week. Spreads between Greek and German government bonds have widened out to nearly 200 basis points as a result. In a currency union, all members should, in theory, have similar credit characteristics. In the eurozone, this is a flaw, one that some think could actually force a breakup if the economic strains intensify further in 2009.