An interesting couple of days for the euro dollar pair, with yesterday’s interest rate rise increasing the differential between the two currencies, followed by the Non Farm Payroll numbers which surprised the markets with another bad number. With all the problems in Europe the rational expectation is for the euro to collapse against all other currencies, so how does it continue to survive, given the problems in Greece and the other lame ducks of Europe. Well the answer lies in the fact that the euro is a political currency and therefore rational price action is rarely the norm making trading of any euro pair extremely difficult. This short video explains some of the issues and how the currency pair has reacted over the last few days to the flow of fundamental news.