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EUR/USD is free-falling after the release of the Non-Payrolls and threatening to encounter the yearly lows. However, the NFP, which was mediocre, is not the reason.

The publication just let the markets react to all the bad things going on. Here are 5 rdebt crisis related easons (and counting).

  1. Finland threatens to leave the euro-zone, and then denies it.
  2. Finland also contests the lack of seniority for the ESM in wehn buying bonds (such as Spanish  sovereign  bonds). Spanish bond yields are already back to the 7% region after hardly a very shot period of calm.
  3. Banking supervision  is now expected  only in mid 2013  (if not later), and not by the end of the year – this is needed for transferring money directly to Spanish banks.
  4. Troika says: no money for Greece until the program is back on track. But how will Greece get on track?
  5. Greece cannot collect taxes: “Over 12.5 billion euros in penalties could have entered state coffers had the mechanism worked”

EUR/USD is at 1.2327 at the time of writing, down around 50 pips. The pair held above the 1.2360 line prior to the release and plunged afterwards. The low was at 1.2318.

The break under 1.2330 is not confirmed yet. 1.2288 is the critical 2012 low.

For more, see the EUR/USD forecast.