Markets will, however, need to be on very close alert for central bank actions during this period as well. There has been a gradual increase in rhetoric against a strong Euro from European officials during the current month while confidence in growth prospects has faltered. Euro-Group Chairman Juncker, for example, stated on Tuesday that it is not possible to maintain a benign approach to a strong Euro.

The evidence suggests that the Euro trading above the 1.40 level was of concern to European officials while the 1.50 level was the area where alarm over the situation will increase sharply. Even the US Treasury will start to wonder whether further dollar depreciation will have any net benefit and there must now be real talk within the banks over the need to step in.

The low liquidity levels over the remainder of this week will also increase the probability of success if there is co-ordinated intervention by the global central banks to weaken the Euro. This will be particularly important if the banks can catch a market short of dollars and needing to correct anyway.