EUR/USD consolidating losses
Despite upbeat Ifo data from Germany, showing sentiment remains reasonably upbeat despite the sovereign debt crisis, the euro has had a rough morning.
Comments from SNB’s Jordan that there is no longer a need to intervene in EUR/CHF, the most explicit statement from the SNB to date that they have abandoned their intervention strategy, has sent the cross to fresh record lows at 1.3620.
The downgrade of BNP Paribas by Fitch is a downer for the euro as well.
Risk aversion is back on the rise as equities continue yesterday’s late selloff. US yields are lower and European bond spreads are wider again this morning.
The UK’s austerity budget continues to roll out in London, including a tough-to-swallow VAT hike to 20%. That’s not going to drive shoppers to the high streets…
Small stops are seen below the 1.2240 level in EUR/USD, traders report. We trade now at 1.2256.

AUTOREFRESH 














Hi Jamie,
We can now enlarge your charts…Happy days
Good morning all.
S&P500 looks ready to cut below 1108.