EUR/USD is sliding in very thin, nervous trading on a headline from a source within Merkel’s coalitions saying Frau Merkel has again rejected raising the cap on the ESM which today rests at EUR 500 bln.
Having gotten caught long on an intraday basis, we’ve slumped to within 10 pips of key 1.3145 support. Large stops are eyed below.
A 1.3100 barrier is rumored.
Update: Talk of a 1.3150 barrier making the rounds….
