Former hedge fund manager Raoul Pal is on CNBC and he has a very downcast view of the European sovereign debt situation. He sees a very real risk of a sovereign default from one or more of the highly indebted members of the euro.
He sums the view up nicely by saying that it used to be when you bought the euro you were buying Germany. Today you are buying Greece and Spain.
EUR/USD is getting another shove to the downside, likely in these comments.
Small stops lie below the 1.3900 level while larger seller orders are seen at 1.3880. Bids lie ahead of 1.3900. We trade now at 1.3904.
