What a little love between friends can achieve, a EUR that’s a damn sight stronger this morning. Euro leaders have decided to amend the Euro Treaty to make possible the creation of a permanent mechanism to aid troubled Euro-zone countries. The details are iffy, but translating political jargon, they will work on them as it’s in their common interest to have a strong stable currency. With Congress approving an extension of the Bush-era tax cuts, coupled with this morning’s stronger than expected German business Ifo survey has led to a cautious recovery in risk loving currencies. The dollar is loosing its swagger, these thin markets will have dealers hunting for short EUR stops just above this weeks highs.
