In Europe, political risk remains front and center.
The latest poll indicates that a third Spanish election would do nothing to resolve the political impasse.
Separately, Italy’s high court has approved a constitutional referendum, setting in motion a vote from Italians on whether to strip the Senate of most of its powers in order to streamline legislation. If defeated, PM Renzi has vowed to resign.
Uncertainty breeds contempt and contempt breeds investors heading for the exits, like they have been for the past year (see below). Remember, this says nothing about the slow moving trainwreck that is European economic data. We remain bearish on the EUR/USD and reiterate our Q3 Macro theme of #EuropeImploding.
Editor's Note: The snippet above is from a note Hedgeye CEO Keith McCullough wrote for subscribers this morning. Click here to learn more.