£/€ has continued to drop off the back of the ECB President Mario Draghi coming up with a plan to save the Eurozone, the rhetoric was strong and the market certainly seemed to buy it but only time will tell.
This week we have been awaiting the ruling from Germany’s top court on whether the unlimited bailout rule breaks Germanys constitution. Latest news is that Germany’s court rejected the petition that Germany’s involvement in the European Stability Mechanism (one of the bailout funds) was unconstitutional and has backed their involvement in the fund.
This is yet another significant positive for the Euro as Germany is due to contribute about a quarter of the money/guarantees without which the debt crisis would have intensified and the single currency crumbled. The Euro has hit a 2-month high against the Pound and a 4-month high against the US Dollar!
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