The Canadian dollar closed above par with the US dollar for the first time since June 2008 today. Next stop $1.05?
Also, the market has spoken on the big fat Greek band-aid offered by the EU. Some commentators tried to talk up massively over allotted 6 and 12 month T-bill auctions. Is over allotment surprising, considering that the EU/IMF has package has effectively guaranteed Greek financing for the next 12 months? Oh did I mention the yields were extremely rich at 4.55 and 4.85 percent respectively? Isn't the current ECB rate at 1%?
After dropping significantly Monday, Greek spreads to bunds and CDS spreads widened Tuesday and Wednesday, closing above Friday's levels Wednesday. This is the market screaming from the clock tower that while addressing the prospects of a liquidity crisis, the announced package does nothing to address the (much larger) solvency issue. More on why the Greek situation is hopeless to come this weekend.
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