So while the recovery in the EUR/USD was not supported by any tangible initiatives to increase the safety net for the Eurozone, the vote of confidence and commitment from the central bank head was enough to reassure investors that the ECB will not sit by idly and watch the euro disintegrate. The problems for Europe are far from over but the sharp decline in Spanish and Italian bond yields will bring immediate relief to fiscal finances.
Kathy Lien
Managing Director
BK Asset Management
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