Last week focused on the European crisis, Hungary, the US job market and PMI numbers. The Spanish deficit was revised wider than previously thought, weighing on bonds in the first trading week of the year. In Hungary, legislation passed in late 2011 has lead to tensions with the IMF/EU about financial assistance, increasing the risk of a balance of payments crisis and thus weakening the HUF. We thus changed our EUR/HUF forecast to 340, 350 and 320 to reflect these new developments. 2182