The German GDP data from a few hours ago was indeed very impressive and even though we are seeing some short-term longs bailing out of their positions, I would tend to think that when the market sits back and analyses what it should be doing, it will find buying EUR a lot more palatable.
The US economy is still struggling to get back on its feet and the USD has little going for it; the JPY is already at quite prohibitive levels and the threat of intervention lingers; and the CHF is also at extremely high levels.
Certainly the risks relating to the PIIGS stil exist but in my eyes the EUR has just become a little more attractive. It may take days or even weeks to feed through into market sentiment but I think EUR/USD and EUR/CHF to some extent, may soon turn higher again.
