Irish banking woes are undermining the euro as traders rush to book profits after a very strong rally pulled up just short of the 5-month high.
Ironically it was the November ECB meeting in which Trichet was peppered with questions on Ireland (and for which he had no good answers) which helped amplify the magnitude of the Irish problems, sending EUR/USD sharply lower. Before long, Ireland was lining up for a bailout…
EUR/USD slipped to 1.4180 and is now bouncing. Expect sellers now in the 1.4210/15 area.