Earlier today I posted an article in the links on the euro's move up to a 14-month high. As I write this, the euro is trading a 1.3568 to the US dollar, up markedly from 2012's low during the sovereign debt crisis of 1.2063 on 25 July.
And there's a big reason for this.
Looking into my archives from that period, I see articles like "More on the euro disaster and current account imbalances" from Randy Wray on 17 Jul, "German – Spanish 10-year spread reaches record 610 basis points" from 20 Jul and "On Spain’s death spiral, regional bailouts and Germany’s ability to profit from crisis" from 22 Jul. It doesn't take a rocket scientist to figure out that euro weakness is directly related to the sovereign debt crisis then. In fact, the euro bottomed on the very day that Mario Draghi announce...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.