Greece, UK Debt Crisis Through Eyes of Currencies (EUR/USD, GBP/USD)

Watch the sovereign debt crisis in Europe through the eyes of currencies (March 1, 2010).  In this case the Euro (EUR) and Pound (GBP).  EUR/USD (Euro in Dollars) is still trading in a downtrend channel and 1.3457 is ultimate support which, if broken, opens the door to lower levels (1.30 or perhaps parity). Read the post I did on Sunday for more info on Euro/Gold, Euro/USD, the Euro hedge fund meeting (Soros, SAC etc.) and an interview with German banks via Deutsche Welle.

EUR/USD (Euro/US Dollar) - FreeStockCharts.com

Now a look at the British Pound.  On February 8 I did a blog post on GBP/USD when it was at 1.55 and said make sure it stays above October 2009 support (1.57) or it will test the 1.40s.  It hit a low of 1.478 this morning, -1.5% on the day and -4.6% in 3 weeks.  There was buying/covering off that level this morning.

GBP/USD (British Pound/US Dollar)

I'll provide a Euro themed linkfest later.  For now it appears that UK debt levels are now in play.  It's interesting that SPY and $USD are moving up together today.  

Sterling slides as deficit worries mount (FinancialTimes)
Gilts lose triple A lustre for investors (FinancialTimes)
Foreign Investors Sold Most U.K. Gilts Since April (Update1) (BusinessWeek)
Pound Plunges, Gilts Slide Amid Prospect of ‘Hung Parliament’ (BusinessWeek)