Seems the turning point may have been early June when Trichet made a proposal that included the ECB, as previously discussed.
And note, also as previously discussed, it’s all about ‘the euro’ meaning ‘strong currency.’
So a big relief rally with the solvency issue resolved, and then just the reality of a bad economy, and a too strong euro with no politically correct way to contain it, as dollar buying is ideologically all but impossible.
Also, as previously discussed, member govt deficits seem high enough for modest improvement, absent further aggressive austerity measures.
*MERKEL, HOLLANDE READY TO DO ANYTHING TO PROTECT EURO REG
*GERMAN CHANCELLERY COMMENTS IN E-MAILED STATEMENT
*GERMAN CHANCELLERY COMMENTS ON MERKEL-HOLLANDE TELEPHONE CALL