European manufacturing PMI plunged to a record low this morning, talk of the nationalization of a major US bank or two will not die down, Ukraine is threatening bankruptcy over natural gas payments due to Russia, Japanese stocks falling to a 25 year low…. The world should be curled up on the floor in the fetal position. The one bright spot today was the fact that the Brits practiced a little retail-therapy after Christmas.
It is hard to see the euro flourishing in this environment. Use rallies to 1.2690/00 to get short for a break of 1.2500.
