Friday, November 16, 2012

Europe Remains on Center Stage

The European debt crisis and the policy paralysis continue to dominate the capital markets. The euro has been driven lower, breaking below the 200-day moving average in Europe for the first time since January 12th today, before recovering following respectable bill auctions in Italy and Greece and talk that the ECB broke a couple month hiatus and intervened bought sovereign bonds. The euro bounce is unlikely to be sustained. Look for the $1.4000-$1.4050 area to now denote upper end of range.

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