Halloween proved to be a nightmare for the eurozone as sovereign yield spreads began widening once more, equity markets fell sharply and so too did the euro. Over the rest of the week we are looking for signs of follow through and, if EUR/GBP slips below 0.8525, our concerns would rise. Month-end signals were marginally bullish for the USD, but the absence of compelling reversal patterns cautions against assuming a meltdown is now under way.
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