The most stable correlation in recent months continues to persist with the EUR dropping further earlier today to a fresh 3 week low, on more bad news out of Europe, yet coupled with a decline in interbank rates. The EURUSD printed at 1.2811, mere pips away from the 1.2800 100DMA (at the same time as the EURCHF plunged to below 1.36 after hitting a high over 1.38 yesterday). As expected, this has led to a decline in the Euribor rate, whose fixing came at 0.899% (3 Month), versus 0.903% previously. Both 1 Week and 6 Month Euribor also declined. The ongoing macro weakness in Europe is predicated on two big macro events: the confusion surrounding Slovakia's refusal to participate in a Greek bailout, as well as rumors of another round of ECB purchases in the Irish 6 and 9-month (€0.5 Billion each) T-Bill auctions, which priced at 2.458% (previous 1.367%) and 2.81% (previous 1.800%), respectively. The Bid To Cover was 3.6 and 3.1, versus 2.8 and 3.4 previously. Further underscoring Europe's own relapse into a PIGGSy inferno, was Greece's announcement of May unemployment at 12%, versus 9.5% last year, but more relevantly, the country's GDP declined more than expected, coming in at -3.5% from last year, on expectations of -3.3%, and a 1.5% QoQ (-1.0% exp). They should just wait to see what happens when all the strikes are factored in. All in all, it should prove to be another interesting session.