To trade forex, gold, commodities, the stock market, and futures you need to be aware of how international strategic motivations affect market sentiment. Prices are driven by "groupthink" perceptions of the unknowable future. News is incomplete or manipulated. We try here to penetrate beneath the spin to understand how strategic interests, international politics, and strategic mistakes affect future sentiment, to forecast price trends.
Portuguese bond yields remain at more than twice sustainable levels: 19.3%, 22% and 16.3% for two, five and ten year maturities, far in excess of the 7% levels which trigger alarm bells for Greece and Italy. On top of Italy's and Greece's needs for significant new borrowings, stabilisation of Portuguese debt will demand more of Europe's bail-out funds, further locking in the likelihood of massive global money printing, the ultimate effect of which will be very high inflation after the velocity of money increases again.
No nation can survive borrowing money at those high prices.