The euro, once on death's door, is on a months long tear, rising Wednesday to its highest level since November 2011.
But even some investors who helped propel the currency above $1.3560 Wednesday say it can't fly much further. Europe's economy is still in the doldrums, they say, and a stronger euro could make the situation worse.Concern is rising that the stronger Euro will impact Europe's ability to export goods at competitively attractive prices. While the Euro was in free fall mode, exports rallied. As the duration of the Euro spike is unpredictable, that celebration may well be short lived.
Irrespective, the segments of the EU who are feeling the pinch the most, are the weaker countries, notably PIIGS, who have to compete with their stronger partners, Germany and France, to capture market share of the lucrative export industry.
The sudden upward adjustment in the Euro for most of the weaker members, is an uppercut to the jaw, which may well leave these smaller nations, sprawled out on the canvas.