After EUR/USD broke through floor support the other day in that perfect descending channel, or long-term downtrend since May 2011, tonight EUR/USD broke through 1.29 and is currently trading at 1.2866 (4:33am Eastern). The next line in the sand is the January 2012 low of 1.262. I have a post coming up on the GLD/SPY ratio, GLD, and SPY. The same risks are haunting the euro: the possibility of Greece leaving the Eurozone and causing market dislocations, insolvent banks, debt contagion spreading to Spain, Italy and Portugal, deflationary recessions in the Eurozone ex-Germany, and perhaps more easing by the ECB.
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