There is no question that QE3 or no QE3 is playing a big role in the day to day movements of currencies but while Europe's crisis has faded to the background it has not disappeared Spain is scheduled to sign a memorandum of understanding for its bank bailout plan at the end of this week and with some details still unknown, there could be some euro induced volatility for currencies towards the end of this week. ECB President Draghi said this morning that the question of burden sharing with senior bondholders is being discussed on the European level. Even Bernanke said there is a possibility that the situation in Europe could worsen. Given the troubles in Spain, it is no surprise that German investor confidence hit a 6 month low in July.
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