Another meeting on Friday…Oh, to have the frequent flier account of a eurogroup finance minister…
Massive volatility this morning with Italy firmly in the spotlight. The risk to Italy now is not so much that they default or the banks crater but just that rates stay elevated around present levels and drive the funding costs of their accumulated debts o unsustainable levels.
Italy’s case should send chills through the White House and the US Capital, as it could easily happen here…
US equities have rebounded sharply since talk of Chinese buying of peripheral debt made the rounds earlier, helping lift EUR/USD from lows. Stops are seen in the 1.4020 area; sellers return toward 1.4030/40.
But have no fears for the euro. European leaders will meet again on Friday. I’m sure they will sort everything out then…
