Great news! The euro is rallying hard this morning, climbing back over $1.23.Just one problem for bulls: The market isn’t so concerned about the euro anymore, or at least it’s not as moored to it.
In fact, while the US market hits fresh lows, the euro hasn’t hit a new low in ages.
Sure, bank and sovereign debt fears in Europe continue to abound (Spain is definitely hogging the limelight on those fronts), but the fact is that the world’s attention is starting to refocus around the US (and China).
Frustrating jobs and housing data in the US — brought into particular focus in recent days due to post-housing tax credit reality — has violently revived the debate about the US economy, and the double-dippers. Hence, everyone will be focusing on today’s initial claims, and more importantly tomorrow’s big monthly jobs report. The euro meanwhile, is quickly becoming yesterday’s news.