Of course, one of the more remarkable aspects of the past week has been the resilience of the euro in the face of the underlying developments of the sovereign debt crisis. This could well be repeated later today when Ireland publishes the results of the latest stress tests on its banking sector, where nationalisation of two more institutions appears likely. But what are worrying are the self-destructive forces that are now at play, which stem from the weak incentives and structures required to reach any lasting or binding agreements at the pan-eurozone level. Guest post by FXPro Germany is digging its heels in on the European Stability Mechanism (ESM) but, by doing so, it is putting more of the funding pressure on the periphery after 2013 and increasing the likelihood of bail-outs. Meanwhile, by refusing to call for outside help, Portugal is increasing the likelihood of debt restructuring further down the line. And finally, by raising rates, the ECB is putting greater pressure on those nations currently suffering the most, given that the average maturity of their debt is the shortest within the periphery. So, if things are this bad, why is the euro not suffering more? For now, it appears to be down to the interest rate story. The ECB’s apparent determination to increase interest rates, likely as early as next month, appears to be one of the more dominant factors. Furthermore, to be fair, some countries have done fairly well in delivering fiscal consolidation, which is one of the reasons why Spain has managed to decouple from Portugal over the past couple of weeks. Nevertheless, there are some strong undercurrents beneath the euro that look set to keep investors on edge in the coming days and weeks. Simon Smith, Chief Economist Disclaimer: This material is considered as a marketing communication and does not contain and should not be construed as containing investment advice or an investment recommendation, or, an offer of or solicitation for any transactions in financial instruments. Past performance does not guarantee or predict future performance. FxPro does not take into account your personal investment objectives or financial situation and makes no representation, and assumes no liability to the accuracy or completeness of the information provided, nor for any loss arising from any investment based on a recommendation, forecast or other information supplied from any employee of FxPro, third party, or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07). FxPro Financial Services, Karyatidon 1, Ypsonas, Limassol 4180 Cyprus. FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Opinions share Read Next Euro Pushes Forward with Inflation Yohay Elam 11 years Of course, one of the more remarkable aspects of the past week has been the resilience of the euro in the face of the underlying developments of the sovereign debt crisis. This could well be repeated later today when Ireland publishes the results of the latest stress tests on its banking sector, where nationalisation of two more institutions appears likely. But what are worrying are the self-destructive forces that are now at play, which stem from the weak incentives and structures required to reach any lasting or binding agreements at the pan-eurozone level. Guest post by FXPro Germany is digging… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.