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EUR/USD easier as stocks edge lower

By   || June 22, 2010 at 18:42 GMT
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The S&P is back below its 200-day moving average this afternoon helping drag EUR/USD and EUR/JPY lower in light trade. The S&P is down 0.6% while EUR/USD is down to 1.2275.

On the fixed income front bonds trade like we should be afraid, very afraid.

2-year notes are below 0.70%, now at 0.697& after the lowest 2-year auction rate on record. The 10 year note yields a mere 3.17%. Time to refinance again…

1.2240 remains key support near-term in EUR/USD with 111.00/05 important support for EUR/JPY. We are testing that level as we write.

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