Despite all the nay-sayers, the EUR will seemingly survive another near-death experience and what doesn’t kill you makes you stronger. Germany probably seriously considered its position in private over the last 9 months but the thought of how strong its currency would become were it to leave the EUR swayed the day. The market will undoubtedly turn its attention to Portugal but that could be months away. In the meantime the focus could turn elsewhere; that’s how the market works.
Now what remains to be seen is whether the short-term speculative market is overly short. If it is, in increasingly thin markets, the EUR/USD will be back at 1.36 before the week is out.
