EUR/USD is supported near-term by hopes the US will throw US automakers a lifeline to sustain them through the credit crisis. These hopes have helped prompt a modest bounce in US equity futures and a significant pop in GM shares. Overhanging the euro however are growing fears that Russia will devalue the rouble. This is sending capital scrambling for the exits. In turn, this pressures the euro given large exposures to Russia among struggling European banks. Look for risk aversion to stay high amid this backdrop.
EUR/USD Support sits at 1.2480 and 1.2445. Resistance is building in the 1.2630/50 region.
