One Possible Explanation For The Plunging Euro: Pension Accounting Change To Impact European Deficit Calculations
The EUR is in full plunge mode as of an hour ago.
There has been no explanation for this sudden weakness, although a reader proposes a very troubling explanation:
As you might have heard 9 mainly EU-newbies sent a letter to the EC demanding to change the current system of account deficit calculation. They argue their pension reforms should be accounted for in the calculation. The letter was obtained by dpa-afx. Could be a reason for the dropping Euro.
Of course, should this "reform" be enacted, Europe's deficits are likely to surge materially overnight, extinguishing any optimism that Europe has managed to avoid the crash. We can't wait until this hits the major newsstreams.