Euro Selloff Extended on Persistent Worry on Spain Euro remained broadly pressured last week and fresh selling was seen towards the end on renewed concerns in Spain. Spanish 10 year yield closed above 7.2% was a clear reflection on markets' lack of confidence despite all the efforts by European leaders. Risk appetite was originally solid on corporate earnings and sent DOW to as high as 12977 and boosted Aussie, Kiwi and Loonie against dollar. And the contrast in the sentiments on could be seen with EUR/AUD and EUR/CAD dropping to new record. However, equities markets were then dragged down by Eurozone worries and sent the high beta currencies lower. After all, the overall development in markets remained unchanged. Equities could still trying to make another high cautiously, on expectation on more easing from major central banks, even though the path would be bumpy. Aussie and to a lesser extent, Canadian and Sterling, would benefit most from risk rallies while Euro will definitely lag behind. Eurozone concerns will be the major driver that set risks back and in those cases, the common currency would continue to be sold off. Dollar and yen would be stuck mixed with yen with an uncertain upper hand. So, selling EUR/AUD, EUR/CAD, EUR/NZD and to a lesser extent, EUR/GBP, would remain the strategy that has the clearest higher odds. Full Report Here... | 
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