The great mystery: Why is the euro still so strong?

Amid all the negative newsflow on Europe this year, the euro has remained relatively resilient.

However, some commentators suggest the single currency's strength may finally start to wane in 2012. The euro is currently trading at around $1.33, still well above its June 2010 low of $1.19, despite the slump in sentiment this year. Recent moves have also been less significant than expected. "It amazes me that we can have mayhem in Europe but not in the euro," said Société Générale head of foreign exchange Kit Juckes last month. Yesterday's move by the European Central Bank to cut interest rates from 1.25% to 1% has removed some of the support for the single currency at a monetar...