Latin currencies are swinging like vines this morning, rebounding 8-10% in the cases of the real and peso. Both units are near their highs for the day, helping ease risk aversion and subsequently supporting EUR/JPY.
USD/MXN is 110 big figures below session highs or 8% firmer than just 90 minutes ago.
Perhaps the emerging markets rebound will prompt hedge funds who are still winding down positions to do so in a less expeditious manner, if their creditors will allow it.
EUR/JPY and EUR/USD are firmer but not running away to the topside. Offers are seen through 1.2850/60 in EUR/USD. Stops are eyed in the 1.2860/65 region from weak shorts.
