So This Is Depressing: Why The Euro Doesn't Seem To Care About The Sovereign Debt Crisis

It's been a head scratcher.

Why doesn't the euro seem to care about the sovereign debt crisis affecting so many member states.

See, for example, this chart from Morgan Stanley showing how Spanish CDS and the Euro are diverging.

Ah, but that's deceiving. The Euro only looks strong because it's being compared to the US dollar!

Compared to the Swiss Franc, the euro is following Spanish CDS.

The dollar is so weak, it's masking the euro's weakness. Change the denominator to the Swiss Franc, and you can see the impact of the debt crisis.

For the latest investing news, visit Money Game. Follow us on Twitter and Facebook.

Join the conversation about this story »

See Also:

• Gold And Silver Making New Huge Moves, As China Makes Fresh Noises About Dumping The Buck
• POP QUIZ: How Much Has The Dollar Collapsed In The Last 3 Years?
• The Dollar And Gold: A 20-Year Perspective

Full story at http://feedproxy.google.com/~r/businessinsider/~3/f-IkXvWUhAk/so-this-is-depressing-why-the-euro-doesnt-seem-to-care-about-the-sovereign-debt-crisis-2011-4