Tuesday, September 27, 2011

Spanish Support Euro Bonds

Euro officials have also talked about increasing the size of Europe's 595bn rescue fund by allowing it to take loans from the Euro Central Bank.

The markets have been going risk-on overnight, and currently opening higher in the euro session.

The eur/usd is still playing catchup to the AUD/USD - but I think it will make a fresh break above 1.36 by tonight's session, warranting no stupid political rant/ revelation regarding the euro crisis.

So far, the plan to abate the crisis is in place - we are just awaiting the details, and the markets will price in hope, at a discount to the price they've put in fear the past few days. I expect a normalising of market price action once the euro situation clears.