There is nothing more dangerous in financial markets than governments and central banks playing for time as markets ruthlessly exploit underlying weakness. Although position adjustment remains a powerful short-term force, the Euro is ultimately in a no-win situation. If the ECB can push ahead with plans to launch its aggressive bond buying programme with a cut in interest rates, there will be an improvement in risk appetite, but this will not support the Euro as it will increasingly be used as a global funding currency. If the German Bundesbank and Spanish government decide not to co-operate and look to derail the ... (full story)