Days of relentless selling finally came to an end overnight in Asia with a 14% jump in Hong Kong stocks coupled with a 6.6% rise in the Nikkei helping take the pressure off markets globally. EUR/JPY rose on short-covering, reaching 120.50 before pausing for breath. Intervention was seen in Australia and the Philippines while it was threatened in Singapore.
EUR/USD bottomed around 1.2330 overnight for a second time this cycle before bouncing abound 2.5 cents. Dealers now have a level against which to lean if they fancy a long position. Follow-through buying in US equities would be the best medicine for the sickly Euro.
