I thought it was the US that was supposed to be going bankrupt?
Now it is the too-big-to-fail twins of Italy and and Spain that are spooking European markets. So much for the latest EUR 100 bln package halting contagion in our time….
In Italy, Finance minister Tremonti, a budget hawk, is again threatened by corruption charges. Rumors swirled again this morning that he will be forced to step down.
Lots of very disappointed EUR/USD bulls out there as we sit more than 2.5 cents below yesterday’s highs.
Not much support in EUR/USD until down at 1.4185, the 50% retracement of the 1.3838/1.4533 rally. Heavy offers are seen toward 1.4320/30.
