Don't bet on it For most of its brief 16-month life, the euro has been falling. The market is not willing or able to arrest the slide.'' A torrent of money has rushed out of Europe as businesspeople and investors have fled the Continent's anemic economies. But that may be changing. In January and February, the stream of cash to pay for mergers turned in Europe's favor. Two months don't make a trend, of course, but there are reasons to think that it could continue.
Most observers are much more pessimistic.
They think that the euro's image is so badly dented that economic fundamentals alone won't turn the tide. If the euro crashes and burns, confidence in Europe will be wrecked. And that could prove costly. The region's burgeoning capital markets have been a big success so far. But there are signs that the euro's weakness is blighting this market.