By Dean Popplewell

The EUR rallying to its highest level in four months reflects a market that is getting more bullish on the single currency, and not just less bearish. Apart from the hot money being poured into the market, there are some longer-term funds behind this stellar run up as investors buy new long positions rather that just investors covering their weaker shorts. Aiding the single unit this morning is the German court rejecting complaints against the ESM and fiscal compact.

In a long awaited ruling, the court turned down an injunction request that would have stopped the ESM finally being signed into German law (should have been done by July 1). It will now allow ratification, but not surprisingly, it has set conditions. This is what the markets had been expecting. The surprise would have been if the court had upheld the complaint. Now it’s all about the