I have been fretting lately about the potential for the break up of the euro and how the resulting currencies might be valued. The imminent departure of Greece seems pretty realistic.
There are two superb charts here: http://www.telegraph.co.uk/finance/financialcrisis/8960332/Graphic-How-exchange-rates-could-collapse-after-a-Euro-break-up.html
Basically, ING & Nomura say everything but the DM depreciates against sterling and sterling itself falls to 1.42USD.
It may be that those dismal economists need to cheer up a bit. There is a recovery of sorts on the go. On the other hand, if you were a real money investor, where would you put your cash if faced with that sort of instability? The flight to the dollar would become a self fulfilling prophesy.
I'm short on the euro by the way.
Pip! Pip!
HP
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