With a new occupant in the White House this morning there is focus on restructuring the TARP and that helped spark some hope in Asia, an ultimately a short-squeeze in EUR/USD and EUR/JPY. The gains were short-lived, however, despite rebounds in US equity futures.
Very large option expiries at the 90.00 strike in USD/JPY should keep prices glued to within 20-pips or so either side of the 90.00 level.
Bank shares will remain the keen focus of the market today and should keep risk aversion first and foremost in investors thinking.
The Geithner confirmation hearing will be closely watched as well, though most think he will get through after a some minor roughing-up.
