EUR/USD
It’s not a sure thing but the chiefs of the Central Banks and the heads of the governments seem to have come to understanding of each other at last. The former are ready to take more drastic measures, while the latter are looking to more balanced budgets. Of course, they will do one in exchange for another. That vicious spiral (economic downturn – rising budget deficits – tightened credit terms – economic downturn) is very likely to break. On Wednesday we witnessed coordinated actions of the Central Banks. And on Thursday we heatedly discussed Mario Monti’s revelation of the ECB’s intention more…