![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5j9Ylv7zTBu_jx1IkBAtZK87DQ6FG1G_tWGh639J3qu3sbAqgf5SPgualTnZ4jMp1AigWG8iFT564udgrBee3YVxjYjUQrwoDTOSyRW7rTKeVg4OhJl9nASmj96sIgjn_3KTP/s320/Euro022010.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8dPMwQDT15Ck40yeJZRxQrTS73PTcLI7LfofQyfgW1ucGzg4b-dTUhx_52UVoQm2dM-g_Refy3lfsFXm0WqtfyuMaXBPUBqnBXm57jAeDTyeUMLvE7nxYLVzTAVW-KV87UQyf/s320/OilEuro022010.gif)
In the wake of the collapsing euro (top chart), we see a potential upside breakout in the price of oil denominated in euros (bottom chart; USO/FXE).
Rising oil prices for euroland would contribute an additional headwind to economic growth. I notice that European stocks (VGK) have bounced only modestly this past week after hitting multimonth lows. Year-to-date, the S&P 500 Index (SPY) is down less than 1%, but VGK is down nearly 6%.
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