A story published in the NY Times over the weekend is being forwarded around still and helps illustrate the importance of arresting the erosion in confidence in European sovereign debt markets.
Confidence is being eroded further by the day, exemplified by the slide in the euro and the renewed widening of yield spreads within the eurozone. Rumors of a Spanish downgrade made the rounds this morning but even though they proved unfounded, EUR/USD has still not found its footing.
1.3050 bids are rumored in EUR/USD near-term but stop-loss sell orders are seen below that level. 1.3000 barriers are rumored to be huge, making them a prime target. Offers reside at 1.3110/20 on bounces.
