Hi everyone. I hope you’ve been paying attention to the events surrounding the Greece sovereign debt crisis. Things look to be in pretty bad shape for the European Union and as such if nothing is done the Euro could collapse as a viable currency if the debt contagion is not stopped. In relation to this subject I’ve posted a interesting article over at my finance blog that I think you will all enjoy. It’s written by Bryan Rich from Money and Markets and in this article Bryan argues that the ECB WANTS the Euro to lose value. This would explain why Jean Trichet refused to verbally prop up the Euro while its value on the international currency markets was falling.
I for one agree with Bryan’s assessment and see it as the only reasonable course the ECB can take for the short term. To me this basically screams SHORT EUR/USD without mercy, but we shall see how the market reacts tomorrow. I believe it will still continue to punish the Euro. But without further ado here is the link to the article: