Archived IMT (2010.04.06)

EURO's DOWNTREND REMAINS INTACT based on a deteriorating yield gap and Greek fiscal uncertainty. US 10 year yields are now 90 bps above their German counterpart (highest in 3 years) while on the short-end of the curve, USD 3-month LIBOR is only 29 bps below that of that EUR 3-month LIBOR, the lowest spread since December 2007. Euro's WEEKLY FAILURE TO CLOSE ABOVE $1.3580 is the latest in many a prominent technical failures, thereby re-affirming the case to short the single currency from a fundamental and technical stand point.