After recent suggestions that contagion was about to spread to Spain, the FT reports that Spain's most recent bond auction has been successful. The Euro is currently trading around $1.23.
I have no doubt there are going to be fluctuations in fortunes over the coming months. However, even if PIGS continue to weigh heavily on the Eurozone, I think measures to stabilise the single currency are slowly bearing fruit. In which case attention will turn to other currencies residing in overexposed economies (esp. dollar and sterling). I also think it's becoming clear that there is a sizeable and stable economy behind the Eurozone, and that political will to guarantee the Euro and its component members has not wavered. I think it is also becoming clear that Germany's tough line on Greece is also paying dividends, as it has helped create an environment for real-world compliance. Speculators will, of course, continue their attempts to create an air of instability. However, as PIGS continue to play ball the prospects for speculative gains will diminish, and I expect the Eurozone crisis to drop slowly off the agenda.
For those who can access FT.com: FT.com / FT's rolling global market overview - Spanish bond auction success boosts euro