The really short-term types have been doing some short-covering in EUR/USD after bids out of the Mid-East materialized in the 1.4640s. The move back above 1.4670 helped prompt day traders to throw in the towel on shorts taken on hopes for a re-test of the overnight lows at 1.4630. Oil prices are rebounding, a further signal to cover.
The data is out of the way for today so dealers will focus on weak stocks and ongoing credit jitters. Those jitters were fueled further overnight as former IMF economist and Harvard professor Ken Rogoff forecast a big bank failure ahead in the US as the credit crisis continues to unfold.
