Euro outlook summary – China review, Euro at 1.2170 in Tokyo, next stop 1.18

Most analysts are now talking about 1.18 as the next new low for Euro. There were rumors of Chinese officials reviewing their Euro-zone debt holdings, more concerns about Spain and Italy and the extent, depth and length of a slowdown in Europe on account of austerity measures. The fall in Euro last night in New York put a dent in the day long rally in Dow and also pulled oil prices down from the 26th May day high.