EURUSD Rally Collapses Under Spain Rescue Details, Greek Vote Fears
The Euro Zone's fourth bailout was announced this past weekend, but relief didn't exactly translate into gains for the euro or risk-sensitive assets. In fact, after the initial flush of optimism that follows a massive injection of stimulus into the system; the EURUSD, S&P 500 and stability-dependent capital market benchmarks all succumbed to sharp reversals and sizable declines on the day. From the Spanish situation itself, a lack of details and precedence of bond subordination for spreading underlying funding problems were further complicated by the concern of bigger issues over the coming weeks. What will the euro and risk do in coming 48 hours? What will they do through the rest of the month?
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