In a separate report, the WSJ on Friday wondered whether the single currency can defy “what appears to be the overwhelming consensus” and hold together in 2012.

CurrencyShares Euro Trust is down about 2% year to date. In another example of bearish euro sentiment, short interest in the ETF is 178.4% of shares outstanding, according to ETF Channel.

Euro currency ETFs are caught in a downtrend, says Investors Intelligence technical analyst Tarquin Coe.

“As long as that direction continues the U.S. markets will struggle to hold a sustainable rally. Euro weakness has generally signaled ‘risk-off’’ this year,” he wrote in a newsletter Friday.

Read the disclaimer; Tom Lydon is a board member of the funds for Rydex|SGI.