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Daily OANDA Forex Blog (Mar 18, 2010 at 06:05:19am) — by Dean Popplewell

Bigger cracks are appearing. European cohesion is being questioned and with that the longevity of the EUR currency itself. The public perception of ‘unity with promises’ has been broken by the German finance spokesman. He stated that ‘we have to think about who has the instruments to push for Greece to restore its capital-markets access’. It’s a rhetorical question that both Trichet and Sarkozy do not like the answer to, ‘nobody apart from the IMF has these instruments’. This is not even a u-turn in EU unity from the Germans perspective, they have been adamant in their views on the Greek debacle. Providing coinage and a back-stop was not in the forefront of their rescue proposals. Attempting a Greek rescue without the IMF ‘would be a very daring experiment’. The lack of EU leadership and no European institution in place to directly tackle the Greek deficit woes continues to persuade investors to shy away from anything EURO’ish and into almost anything else. Expect a...