There's room for debate whether we saw a true currency crisis in the Euro but 'this prediction has failed utterly' is overstating it. We saw unusually dramatic short term moves in the Euro in May and there was widespread talk about the future of the Euro being uncertain. Questions about the long term viability of the Euro continue to be raised.

I'd argue that charting any of the major currencies against gold indicates an ongoing loss of confidence in all of them - from this perspective the dollar and the euro have both declined in absolute value over the year while trading places in terms of relative value in response to changing perceptions of which one faces the biggest problems.

'Currency crisis' was in retrospect a somewhat ambiguous prediction to make since there is no clear criteria for establishing what constitutes one. I'd argue that the euro underwent the beginnings of a currency crisis in May but that the unprecedented intervention by the ECB forestalled a full blown currency crisis.