European Debt Takes Center Stage Again

On July 23, 2012 by TradingDesk

The European debt crisis has taken center stage yet again, with Friday’s sell-off being dwarfed by today’s move. Spanish 10 year bonds are at a record high over 7.5% after the latest GDP reading showed a 3rd straight quarter of economic contraction. Greece is making headlines again, as it appears unlikely that they will qualify for their next round of bailout funding. With the negative headlines, the Euro has fallen below 1.21 dollars for the first time since June 2010, and is dragging most markets down 1-3%.

Refined product prices are down nearly a dime, moving in sympathy with financial markets despite rising tensions in the middle east. While the run towards $3 has failed for RBOB and HO, it is too early to say that the rally is finished, with a break below support in the $2.80-2.85 range needed to confirm a reversal.

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