Friend of ForexLive Vincent Cignarella from DJ FX Trader points out:
After the coordinated swap lines were announced in mid-September, the euro jumped 200 pips the following week only to close down fall 700 the following two weeks. It then traded up and waffled within a large range subject to one headline risk after another. On Oct. 27, the euro jumped to $1.4248 on news of EU leaders expanding the EFSF bailout facility.
Two things to watch for–will the euro fall the next week and will it rise after the EU ministers meet on Dec. 9, when they may announce an expanded EFSF bailout facility possibly including the IMF? The answer is it didn’t matter before as the euro kept falling after prior events, and it won’t matter now. The ECB is the only answer. Accept no substitute.