Spain's 10 year soverign debt yield is once again above 7%.
And now it has just been reported that Sicily (population 5 million) which is becoming the Greece of Italy is at risk of defaulting on its high public debts.
This past Friday the Milan stock market dropped 5%.
And the Euro posted a new low vs the US dollar on Friday.
For those doing the "long US dollar-short the Euro trade" with EUO-NYSE; this coming week may provide the opportunity to take profits as the Euro approaches the bottom of its price channel.
The short term target is around the June 2011 low of 1.1876US$ per Euro.
The following US dollars per Euro chart from Fridays EWI Short Term Update.
Click to enlarge.
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