It’s been a tough morning for the euro with the market focusing on Greek woes intensely. Spreads are ballooning this morning, with the market dumping Greek debt at a quickening rate. 10-yr Greek debt now yields 446 bp more than the German benchmark, a record (by a lot!).
The ECB will spend most of the morning talking about Greece, I suspect. Rates are going no where soon, with the EU economy contracting in Q4 and not doing much better this quarter.
Support for EUR/USD is down at 1.3280 and 1.3265. 1.3250 barriers are rumored now that the 1.33/1.36 DNT has been taken out.
