Spreads between Greek and German debt have widened to 382 bp, withing shouting distance of the record highs of early March. Greece is said to want a new deal with the EU/IMF, one presumably that would lower yield spreads without forcing Greece to the brink of insolvency. From the beginning, it was clear the EU would need to “thread the needle” to avoid having to make good on its pledge to aide Greece.
EUR/USD is flirting with levels just below the 1.3400 level in early New York trade. 1.3385 is solid support for EUR/USD, stops are eyed below that level.
