S&P just put California’s $47 bln in general obligation debt on watch for a potential downgrade. California, as the largest state and one run by a former action hero, gets the bulk of the media attention, but many states are in similar fiscal circumstances which will likely add to the national debt if the Federal government comes to the rescue, as expected.

EUR/USD is retrenching after reaching 1.3277. 1.3300 remains imporortant medium-term resistance. Very minor support lies at 1.3205 and 1.3165.