Yesterday's news from both the Netherlands and Germany was mildly positive for the European Union.
The Dutch have re-elected the previous government, ensuring that for the foreseeable future they will continue to tow the party line and, even if reluctantly, follow the fiscal lead as set out by President Barroso. The German Federal court threw out challenges to the eurozone bailout fund, although they were keen to add a few caveats. None of these would present an impassable hurdle for German chancellor Angela Merkel to show the commitment that she has so often talked about.
It had been anticipated that the markets would wait until 7pm (London time) when the US budget will be announced before making any real directional moves, and indeed the early morning climb up to $1.2928 has largely been given up.