Ratings agency Fitch says that global credit default swaps are being driven wider again by the European debt crisis. CDS widened 12.8% last week despite recent European actions, they say in a report.
EUR/USD is getting a short-covering lift at the moment after the talk of a stress test for European banks. It worked in the US, so markets suspect it may work in Europe. We’ll reserve judgment on that….US banks raised hundreds of billions in fresh capital after the banking crisis; European banks have done much less of that.
EUR/USD traded up to 1.2290 and trades now at 1.2277. Small stops are seen above 1.2300 as stocks trim losses.