By Dean Popplewell

In capital markets big picture, downside risk for the EUR continues to build. All the market has to do is focus on sovereign distress and banking fragilities. However, despite the single currency currently being the weakest link in the FX chain, record shorts remain weary of current price levels. The overall market feeling is that Draghi is more rational than most eurocrats tend to be and we should expect those characteristics to be more likely be bearish than bullish for an economic outlook for Europe. That said, the upcoming ruling from Germany’s constitutional court on the constitutionality of the European bailout fund has overshadowed most of his comments yesterday.

Today’s German court sitting is not expected it to yield a decision, that’s expected in the second half of this month. If ruled constitutional, the single currency should be able to rally a few cents. However, these rallies