IMF: The Good, the Bad and the Ugly of the Euro Zone

• The Good: Weaker euro, close to fundamentals, helping exports
• The Bad: Weaknesses remain in the Euro zone banking system
• The Ugly: It is essential to anchor national budget rules with the objective of balanced budgets in structural rules (A task the Eurogroup has tried and failed at for the last 15 years, even before the introduction of the euro….)

Stocks are under pressure as Europe markets approach the close, pulling EUR/USD down to the 1.1935 area.