I'm sorry for the 1.2350 crowd.
This pair should have broken 1.20 a long time ago, but many were on that hopium after the EU summit and when the $100b bailout was announced. The bounce was artificial and based on blind hope.
Spain yields are where they are, and the funding for the bailout is from the ESM, WHICH DOES NOT EXIST YET. Moreover, the money to fund the thing comes from Spain itself, along with Italy, Greece, Portugal and the rest of the gang.
I'm not discounting another fake bounce based on rumours, but for months we have seen the same exact pattern in the S&P. If correlation holds, and history holds, today is the beginning of a not so fun week for bulls.
This pair should have broken 1.20 a long time ago, but many were on that hopium after the EU summit and when the $100b bailout was announced. The bounce was artificial and based on blind hope.
Spain yields are where they are, and the funding for the bailout is from the ESM, WHICH DOES NOT EXIST YET. Moreover, the money to fund the thing comes from Spain itself, along with Italy, Greece, Portugal and the rest of the gang.
I'm not discounting another fake bounce based on rumours, but for months we have seen the same exact pattern in the S&P. If correlation holds, and history holds, today is the beginning of a not so fun week for bulls.
