While Germany and France retain their AAA ratings from the ratings agencies, the market is much less generous, viewing Germany as the sole AAA of any scale (the Netherlands and Finland are too small to matter much…). A year or two ago, Eurobonds may have been able to save the eurozone but today, the fissures are so much deeper and the price tags so much steeper than they were a year ago that one has to wonder whether even Germany can keep all of Europe afloat…
The political battle to come will be epic. Stay tuned.
EUR/USD is chipping away at further offers which extend from present 1.4395 levels up to 1.4410. Stops lie above that level. More offers are seen at 1.4430 with stops at 1.4435. Downtrend resistance comes in at 1.4447.
