Note that even though concern has eased, for now, about a Greece default in the coming 7 weeks, there has been no sustained improvement in the euro. This makes sense. Note how quickly markets shifted focus to Spain and Portugal as Fitch warned of more credit ratings downgrades, even as both countries attempt to slash spending.

The euro’s behavior over the past days is likely indicative of its fate for the foreseeable future. Here’s why:

The NY Times reports on the European Monetary Fund (EMF) proposal:

Impetus for a European Monetary Fund initially came from the German finance minister, Wolfgang Schäuble, who told the German newspaper Welt am Sonntag, in an interview published Sunday, that the countries that use the euro needed an institution with “similar powers to intervene” as the International Monetary Fund.