Easing rating concerns regarding European sovereigns (Germany and France safe for now:Fitch) helped give EUR/US the boost to present highs but traders report interest to sell from real-money (asset managers) and central banks.
Looks like we’ve bottomed for the near-term and we’re now in a scramble to get back toward a more neutral market position from heavily short levels.
It also looks as though the correlation with equities is back in force, making the algos breathe a bit easier (do they breathe?) .
Stops are mixed in with sell orders in the 1.2820/30 area, so it looks as though the battle will continue in the near-term. Small bids are at 1.2790 and 1.2765/70 on dips.
