The euro is coming off its highs – figuratively and literally – as the single currency saw a sharp sell-off during the Tuesday trading session. The strong Italian and Spanish bond auctions have continued as the EUR/USD trades well above the 1.2000 major psychological level. The problem is that the continued strength above 1.3200-1.2400 poses a problem. One that the ECB has to reel in… The increased exchange rate for the euro has become the new headline that is driving the single currency lower and it’s a real threat. Europe cannot have a surging currency AND keep exports competitive (think: Germany). The Fed did ... (full story)