"...the news overnight is not a game changer for the EUR...the agreement on how to implement the conclusions reached is not as strong as headlines initially suggested...as a result we expect investors to remain cautious. This will keep the risk premium on the EUR elevated... We remain bearish on EURUSD, expecting it to grind slowly down to 1.15 over the next 12 months"
Six days later and that prediction appears quite prescient as the EUR/USD has fallen below 1.24 from around 1.27 after the EU Summit agreement. For the most part, sentiment has headed south since the post-summit euphoria as euro bulls grapple with the reality that direct capital injections into Spanish banks are unlikely in the near term, as are
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