A month ago we wrote that fiscal austerity measures in the Euozone were further along than in the US, but we thought that faster US growth would mostly offset the near-term deleterious effects of Eurozone budget balancing, likely keeping the euro range bound versus the US dollar. However, we think that Germany's economic strength and its increasing dominance in Europe bolsters confidence in the euro's future. Ireland will be a test case, but we think debt restructuring is more likely than a euro breakup. Our view is evolving towards intermediate-term euro strength in light of the following recent developments.

David Fuller's view I think subscribers will be interested in The Weekly View's analysis, which is often ahead of the curve. This issue also contains a particularly interesting graphic.