Reports of the euro’s death are greatly exaggerated

At least for the time being, with a nod to Mark Twain

Just when you thought the multi country currency was finally being kicked lower, then once again Lazarus-like it breathes, gets up and walks once more.

How many times have we seen this over the past days/weeks but whilst there’s no denying the natural demand in the dips we can point to lower highs in a number of pairs that should keep the lid on too many gains ahead of Monday’s Eurozone CPI and Thursday’s ECB announcement.

EURUSD back to 1.3734 from 1.3705. EURGBP 0.8265 from 0.8247 putting a cap on cable ( hurrah! all we got to do now is get rid of those pesky 1.6600 bids!). EURJPY 140.60 having held 140.00. EURAUD 1.4840 from 1.4790 putting a cap on AUDUSD.

Did someone mention teflon?