> The speculation was that either the pound would rise to an even
> more unacceptable level because of the blow to the credibility
> of the Euro, or it would fall.
I think the pound will do well through the end of the year, but the real currencies to watch are the weaker ones that are now under implicit (but not explict!) watch of the Bundesbank. If Italy announces some fuckup in September, will Germany step in and support the Lira to make things look alright? This seems like a spec wet dream.
So I'm not surprised nothing happened on the 1st; the real tests are to come ...
/jordan