The euro made gains versus the dollar this afternoon as investors bought the currency on a relief rally following the constitutional court decision.
EUR/USD pushed through the $1.2900 level for the first time since mid-May, after the German court backed the ESM bailout fund. The Karlsruhe court's decision took away the worry that Germany, one of the bloc's largest contributors to the rescue funds, would have to block the treaty. Conditions imposed by the judges, who were careful to ensure that Berlin's liability did not reach too large a size, were not as limiting as initially feared.
With the court result out of the way and the Mario Draghi plan behind it, it seems there is, for the moment, little to hold back the euro. Spain continues to carp about the possible conditions that might be imposed if a bailout is requested, and of course there is always Greece, but for now the euro is blissfully free of immediate problems.