Dislikedok but clearly US is the core/origin of the problem...things will be much worse in the US than in Europe...Ignored
Everyone assumed that the global economy is not going to be affected by US failures - but the problem is that the US created this mess.. and then sold it to global institutions worldwide. Now that the US is tanking, it's taking everyone else with it too.
Like I said earlier, let's see if the problems stop here.. or they proceed further. If euro+uk come out with more news such as recession possibility, bank failures, etc - then their currencies will be hammered, $ will relatively be strong, oil will drop. If this was just an isolated incident and we don't hear more bad news.. then the $ will be sold.
Markets trade so heavily on sentiment these days, and that sentiment keeps changing on an almost daily basis. One day it's "Oh, the US will cut rates even more now".. and bam.. you see a rally in EUR and GBP. The next day it's "Wait a minute, UK and Eur are in trouble too" .. bam, you see a drop in EUR and GBP.
Adapt to the markets, read what's going on and pay attention! Technicals are great in a normal market, but these times are anything but normal.
I found it very amusing when Washington Mutual was seized, and quickly sold off to JP Morgan. Had JP Morgan not bought Wamu, you would have seen havoc in the markets.
