- Greek default is not an option
- Must push governments to recapitalize banks
- Terms of rescues can be adapted according to IMF rules
EUR/USD dipped just far enough to shake out some of the freshest longs, falling to 1.3668. It is holding up surprisingly well, in my view, on the news that Bundesbank President Weber is set to leave the Bundesbank and will not take up the presents post at the ECB…
Central bank reserve diversification and technically driven buying have been the prime drivers of EUR/USD gains today while uncertainty over who will succeed Trichet, news that Ireland is delaying its bank recapitalization and rare supportive comments toward the dollar from Bernanke helped cap EUR/USD ahead of 1.3727 Fibo resistance.
