At first, the European Central Bank managed to calm the markets. This didn’t last too long though.

Until new developments unfold, the markets are now closed and it’s time to lean back and enjoy some long term forex articles. Here are my picks with an extended selection this time.  Enjoy!

The troubles in the euro-zone aren’t isolated to bonds: Greece still hasn’t received its aid package and the recession seems more real than beforehand. The crisis has a strong effect all over the world, although China and the US sure have trouble of their own.

A new government in Italy couldn’t reassure markets, and the ECB’s bond buying was necessary. In Spain, a terrible bond auction also resulted in some ECB buying. But when will the central bank step up its action? Yields are rising in all countries except Germany. Perhaps they’ll act when German yields also rise – and that’s when the euro will suffer even more.

The US continues showing signs of improvement, but there’s still one highly regarded institute which insists that a recession is coming.

Has the EU Summit indeed ended with a great success? It seems like the big compromise and not the comprehensive solution many had expected for. The rally has limits.

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When it all seemed that the euro manages to forget the debt crisis for a while and enjoy some good news from the new, Fitch poured cold water on the rally with a double downgrade of Italy and Spain.

The euro found many reasons to rise after reaching 8 month lows. One of the drivers for this move was adjustments at the end of the month and the quarter. These moves could reverse next week.

Bernanke managed to sideline the European debt crisis, but very temporarily. Even if Greece gets the next tranche of aid (still unclear), new austerity measures are likely to put it deeper in the trenches. How will this be felt in the euro?