The Euro hit the lowest level in nearly two months this past week. The risk aversion theme has continued and the market is concerned about the recent results from various euro-zone nation bond auctions. Portugal and Belgium were downgraded by Fitch and S&P. Italy’s borrowing costs increased to the highest levels experienced since Rome joined the euro. Policy-makers remain under intense pressure to come up with a way forward and even Germany is having difficulties selling its debt. Volatility will most likely persist as the bond auctions, for a number of countries in Europe such as Italy, are planned next week. ... (full story)