No economic growth in Europe has created dissention amongst several countries that a unified region with centralized policy making will eventually be agreed upon. The no hope for economic growth is firmly in place in Southern Europe and the youth protest rally movement will likely pick up this summer.
What makes this summer different than last is that France is now in the mix. Germany is also holding off its initial stance of deeper integration amongst its members in the common currency. With no hope of any new Band-Aids (rate cuts or negative rates not included) for European debt and poor growth, the euro may have some welcomed weakness.
The idea of a banking union seem far away and with German elections in September, no country will want to negotiate terms on any deal before Mrs. Angela Merkel needs to humor the German voter. The end result will be a lot of nothing from European officials and weaker data points may weigh heavily on the euro. If the euro tanks beyond 1.2500 however we will expect the ECB to be forced to act.