Some interesting developments on the monetary front as the day wore on. One is that gold, after falling hard on the bailout news, only ended up a few bucks, and managed to stay above $1200.
But, the big more notable chart is the euro, which after peaking really early in the morning, began to slide and basically wiped out all of the day’s gains.
This isn’t necessarily ominous, however, for Europe in the short-to-medium term. It’s certainly possible that Europe will experience its own version of what we saw here after our own quantitative easing, a nine month dollar rout coupled with an equivalent market rally. Presumably, that’s a trade euro leaders would be happy to make right now.