Spain was able to sell short-term debt this morning (but at extraordinary yields), helping calm markets slightly.
EUR/USD has been narrowly range-bound about 30 pips either side of 1.2600 despite shockingly poor ZEW data. Mid-East demand is rumored once again though there remains talk of flight out of the euro zone and into Australia, of all places. Nice little economy and all, but it ain’t big enough to absorb a torrent of flight capital…
1.2630 is the 38.2% retracement of the post-Greek election rage. 1.2652 is 50% of the same move.
