Germany’s banking system is exposed to over one trillion dollars worth of “toxic” or risky assets according to a confidential document revealed by the Suddeutsche Zeitung and Der Spiegel magazine.
EUR/USD has continued lower in early European trade, presently at 1.3140 . This news will be weighing on the euro, along with the swine flu-induced risk aversion.
Sources have reported buy orders lined up down at 1.3135/50, and they have so far managed to soak up the early selling pressure, but it’s questionable how long that will remain the case. We’re presently at 1.3140.
