As North American markets remained closed today, European stocks got straight to work on a hope-filled rally to start off the New Year. Meanwhile the generally more sober bond and currency markets did not follow suit with Euro yields rising and the Euro falling.
As this latest update on the Euro shows us though, technically 1.30 is not really key support. 1.39 to 1.41 were much more critical and we are well below there now. This unwinding of the latest carry trade, suggests further downside for stocks, further upside for the US dollar.