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Pisani: The Euro Can Do No Right

The euro is down a full percent today against the dollar, has now given up almost all that it gained yesterday; the dollar has done just the opposite.

This volatility, of course, affects stocks and commodities and makes traders crazy.

What's up today? Recall that there is all this talk about currency swaps that Goldman may or may not have done for Greece.

The question being asked on trading desks is: do other countries have currency swaps on, which could conceal more of their debt?

If so, debt positions in Europe could be wider than thought. That is putting some pressure on the euro.

I know, it's the worry of the day.

Don't bet that the euro is done: there are only 16 of 27 EU countries that are in the Eurozone. Many more will likely join than leave.

Indeed, forget about the Eurozone falling apart: Greece is unlikely to leave, what is likely to happen here is greater economic integration among all the countries. Some sovereignty will have to be given up.

One thing's for sure: the euro is not history, but market sentiment has turned against it...just like last summer, the euro could do no wrong as the dollar was weak — now the euro can do no right.

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