The comeback in the euro this morning was pretty impressive given how fluid the Greek debt situation is. Talk of larger haircuts on Greek debt and Merkel’s wait-and-see attitude on the Troika inspection should cause caution but the market remains confident that at the end of the day the EFSF will be levered and the European banks will receive capital injections.
1.3595/.1.3605 is support on pullbacks near-term while sell orders are perched in the 1.3690/00 area, traders report.
Next up: US durable goods orders. They are expected flat after a 4.1% rise in July.
