EUR review

Western Union:

The euro bled more buoyancy and at one point earlier fell below $1.11 to levels last reached three weeks ago. The euro has suffered gut punches this week in dovish intimations from senior members of the ECB, one of which stood ready to deploy stronger stimulus if necessary, and risks seen as mounting toward a possible Greek default on its obligations. 

The dovish rhetoric from the 19-country central bank was seemingly designed to reverse some of the recent rise in area bond yields, which make borrowing more expense, a negative for the recovery, and the euro whose recently renewed vigor is bad for the export-driven economy. 

Although European officials seem amenable to a weaker currency, they would also need the cooperation of better news on the U.S. economy to really force the euro lower which would help strengthen the case for the Fed to boost interest rates.