Bini Smaghi: Challenges ahead for euro will be considerable

ECB managing board member Bini-Smaghi says the challenges ahead for the euro will be considerable but that he is confident the currency is up to the challenge.

He takes veiled shots at the US and UK in his remarks. Some national policy makers think their national economies will return to a pre-crisis state of balance. They don’t seem to realize it was a state of imbalance (that would apply to the UK and US, is my guess.) He also says the EU could be put at risk if countries use the exchange rate as as an instrument to gain competitiveness at the detriment of others (UK).

EUR/USD fell to retest session lows at 1.2555 on the comments.