Ireland may eventually leave the Euro-zone, abandon the Euro currency. That’s what chief executive in PIMCO, Mohamed A El-Erian thinks. Will the Irish pound, IR £, the currency Ireland had before the Euro, make a comeback?
In an interview on CNBC, quoted by the Irish Times, El-Erian said that bailouts for Portugal and Spain are imminent, and
“Unless we see more than just liquidity support, unless we see something that deals with the balance sheets, expect this contagion to go up,” he said.
Maybe Trichet will indeed resolve the situation by continuing buying bonds, printing euros and pumping liquidity. He gave real hope for a resolution.
For an outlook and technical levels see the EUR/USD forecast.