Sovereign debt fears resurfaced today which knocked back the Euro against its major rivals - especially the USD and GBP. The concerns center around rising yields in the Euro-zone periphery.

Investors demanded a higher premium to hold the debt of those nations with Portugal coming into the crosshairs as its 10-year yield continued to move above the 7% level, which is the threshold cited at which Portugal would not be able to sustain its debt load.

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Here's a look at the 10-year yield for the last month, and as you can see we have seen a significant pick-up in the premium in February. This doesn't show today's action in which yields breached the 7.6% level.

If you want to look at different time frames for yields you can find that here: http://www.bloomberg.com/apps/quote?ticker=GSPT10YR:IND

Spanish bonds were up as well, with the 19-year there hitting 5.35%.

European stocks were down on the news, with banks and other financials slipping. That gave the market a distinct risk-off trading environment today, and the EUR/USD fell from an important pivot near 1.3735, and we were trading below 1.36 in NY trading.

EUR/USD

For more on the EUR/USD please see today's Technical Update: EUR/USD Might be Forming a Head and Shoulders