There has been no respite for the eurozone ahead of the latest meeting of finance ministers in Brussels. The euro fell to 1.2250 earlier, and the 10yr yield in Spain has jumped another 15bp to 7.10%. Incredibly, the latter was below 6.2% early Wednesday. There has been no particular trigger for the euro’s latest decline, other than a constant drip-feed of negative news and opinion. Portugal now appears to be falling behind the run-rate required to meet its fiscal targets for this year; Ireland’s economy seems to have hit the skids as export demand slows; the Italian economy will contract by 2% this year according to former BoI governor Ignazio Visco; and the German Chancellor has been asked to attend a ‘please explain’ meeting with the new President. The ECB also reported that banks deposited EUR 795bn with it overnight, which reiterates the fact that so many banks are still turning to the ‘Bank of Mum & Dad’ to fund themselves. Right now, there seems little to stop the euro reaching 1.20 any time soon.