Falling equity markets in the Eurozone (the Italian market posted a two-year low yesterday), combined with widening yield spreads and rising CDS prices, highlights that contagion from the peripheries is intensifying and even the likes of the Dax are starting to falter. Demand for safe havens is intensifying but with the rise in the CHF becoming parabolic (suggesting capitulation), the search is widening to include not only gold but even long-dated UK government paper.
Click here to read the full report:
http://www.easyforexnews.net/wp-content/uploads/2011/08/Daily_FX_TS-_Dark_clouds_gather.pdf
BARCLAYS CAPITAL
TECHNICAL RESEARCH