EUR:
EUR-USD only breached the 1.26 mark to the upside very briefly yesterday. The
moderate gains seen yesterday are nonetheless worth mentioning as the environment would really suggest stronger selling pressure on EUR-USD.
Spanish yields continue to rise and it has become obvious: the bailout package for the banks has had no effect. However, it is now openly being speculated that Italy might soon also need help. Prime Minister Mario Monti has repeatedly stated that his country will not require any help despite rising financing costs. Anyone who has been following the debt crisis over the past 2 ½ years will know that statements of this nature are a clear sign that the contrary will be the case. So things are getting tight in the bailout scheme. Even though the capacity was recently extended as paid out EFSF funds are not offset against the ESM. All these calculations only include bonds with longer maturities, In Italy the yields for bonds with a maturity of up to one year are also rising. If these liabilities are also considered the bailout scheme would be far too small to be able to support Spain and Italy.
Too much shorts.. and need time and patience.. Some traders has to close their shorts and go long ... The ones with patience and good nerves will keep their shorts.. It is just about time. There is no free money. 
