Just when you thought the euro was safely on an upward trajectory, things are getting interesting again.
Minutes from the
Then there is the Italian election this weekend. Italy does not allow polling this close to voting, but the latest surveys showed former Prime Minister
The prospect of the free-spending, freewheeling Berlusconi regaining power has German officials warning of dire economic consequences for Italy, and it's unsettling investors.
Downbeat economic reports from the euro zone are adding to the weight on the euro. The latest Flash Euro Zone Services PMI survey pointed to ongoing weakness overall. And in the north - generally in much better financial shape than the south -
In case all that is not enough, Jens Nordvig, global head of FX strategy at Nomura Securities, has been examining capital flows to and from the euro zone, and he says it doesn't look good for the euro. Euro zone-based investors are less worried about a disaster in the currency bloc, so their risk appetite is improving, making them more willing to send money out of the euro zone to countries with rosier growth outlooks - as the chart shows.