The Euro is coming under pressure because of the Greek, Portuguese and Spanish economic fears. I don't see much of a problem with this exposure, but its weighing on the market. There is talk of a bail out. It seems probable that the Euro is falling back to 1.2492 support, though there is an interim support level at 1.2969 which will need to be tested.
The best outcome for the Eurozone would be for these 3 nations, as well as other Eastern European countries lacking in monetary and fiscal discipline to have their own currency, so the puritans in the north can define their own monetary identity. The Mediterranean countries can then peg their new currency to the price of red wine.
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Andrew Sheldon
www.sheldonthinks.com
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