All the way back on July 10th we highlighted the fact that the Euro sat on very critical support levels when it stood at ~1.21, some 600 bps lower than the current ~1.29.
We noted that if one were risk-asset bullish they would like to see the Euro bounce at support, which is exactly what’s happened.
Since then Euro equities, gold, silver and risk assets in general have ripped higher – besting them all has been Spain’s IBEX which is up nearly 30% in recent months.
The question is, with the Euro now approaching resistance and other key assets/drivers such as NBG and EWP facing resistance, is the bulk of the Draghi put and removal of tail risks in Europe priced in, at least in the near-term?
Keep on eye on each of these below as the resistance they face could impact risk assets in general.