German Ban Naked Short Sales, EURUSD Resumes Down Trend, Stocks and Oil Tumble

[Forex-Outlook]

Dollar and yen rebound strongly in US session as financial markets are hit by news that German government would ban naked short selling in share of the country's ten most important financial institutions, government bonds as well as credit-default swaps of euro-area government bonds, starting at midnight. The announcement from Germany is viewed as a sign of desperation to "protect" the eurozone-financial markets from speculative attacks. DOW reversed earlier gains and dropped more than -100 pts at the time of writing. Crude oil also breached 70 level against and reached as low as 68.91.

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