EUR/JPY has pulled back to the 153.10 level, filling the gap opened overnight after the GSE news hit the tape over the weekend. A decline in oil prices despite the strong odds of a hurricane hitting the Gulf of Mexico this week is helping underpin the greenback.
Overnight sales of EUR/USD by central banks and the subsequent lousy investment sentiment data from the Eurozone helped set the stage for the decline in the euro and euro crosses. The back-up in US Treasury yields is helping underpin the dollar this morning. EUR/USD trades at 1.4165, the lows of the session. Stops are rumored just below. Expect the usual exotic options interest at 1.4150 and 1.4100.
