EUR

understood.. move over AL.. dave is #1! in market correlations.. but are you forgetting the mighty yen?
short yen pairs were the best trades today..

Eventually Eurobonds will come. But the EU will not present or come up with this solution next sunday imo because France cannot afford higher interest on bonds. If they would indeed
go for EFSF extensions then immediately risk downgrade of France. Thus the most probable
action is ( what could have been expected for about a year) a 60% haircut of Greece's debt.
I think there is no other choice.

Thurs/Friday EU FinMins and Sunday EU Council are crucial mtngs for clues on EFSF versus eurobonds. Trichet hinted at legislation to enable eurobonds and euro since being reacting to that in the rally up. Now we see some consolidation as the events draw closer. It would seem that the EFSF idea is not going to wash with the mkts (for obvious reasons), leaving eurobonds the only acceptable solution.

Comments catnip ?

A failure on Sunday to confirm the expectation could be catastrophic. I am mulling whether to withdraw all cash funds from bank savings accounts.

fact remains that Greece will default possibly even this week . French banks were facing major short-turn funding shortages. They have been selling USD longs to get EUR.
If they still have USD long to sell they must do it this week and EUR will rally again up to 1.39.
But imo they are out of bullits. I do not expect another EUR rally .

Dave..any levels above it may rise to?