Wednesday, May 30, 2012

Down with the euro

Euro Approaches Two-Year Low on Spanish Banks Concern

The euro fell to the lowest level in almost two years against the dollar as Spain struggled to rescue its troubled banks, adding to signs the European debt crisis is spreading to the region’s larger economies.
The 17-nation currency slid for a seventh day versus the yen, the longest losing streak in four months, after Italy sold less than its maximum target at a debt auction. The yen and dollar strengthened as investors sought safer assets ...
Comment: My mental downside limit for the euro was 1.25. Now we' re below 1.24 to the dollar. I'm expecting a strong move towards 1.30 to happen anytime soon. The factor that speaks against my position is opinion-making but not economics reality.

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