"You simply cannot talk like this in these markets,” Timothy Ash, head of emerging market research, Royal Bank of Scotland, in reference to the comments made by Hungarian political leadership Thursday and Friday.
The Euro just broke the $1.20 mark.
The drivers: Along with the unfolding Hungarian budget fudging and PR debacle referenced by the above quote, there has been a significant increase in Credit Default Swap prices for both France and Germany, suggesting that concern is extending from the periphery into northern Europe.
Note the Swiss Franc is rising vis-a-vis the Euro and Forint as reports have emerged that Switzerland's central bank is standing on the sidelines for now.
With the $1.20 support level breached it's hard to see how $1.18 won't be touched soon.
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