Traders, as a contribution to your ongoing economic education, please listen carefully to this Bloomberg interview with Nouriel Roubini, it is outstanding, in my view. He explains things in a clear and comprehensive manner.

For some time, I have been addressing the issue of Eurozone member risk and bank risk related to large having the capacity to carry the risk of the small.

In this Bloomberg interview, Nouriel Roubini, one of the worlds foremost economist's, clearly explains the imminent bank risk in Eurozone and global circumstances.

This supports my view that the Eurozone is behind the curve in stemming the crisis and has greater exposure to bank risk than other regions. This will continue to weigh on the EUR in the longer term, regardless of global risk appetite and USD sentiment. We have been selling cash EUR on rallies. There is a risk of a larger retracement rally in the near term, which should present the opportunity to sell more or resell a percentage of the reduced holdings (that which has been bought back in the recent sell off).

Here is the Bloomberg/Roubini link:

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Chris Lori
CTA, FX Fund Manager