EUR/USD is edging higher, now at 1.2705 on buying from a big German bank. Markets remain on alert for possible central bank intervention.
The ECB, EU, IMF, EiEiO have done a bang-up job in the bond markets, narrowing spreads, but the weakness of the currency could unwind those hard-won gains in the currency markets quickly if the euro continues to tank.
As I’ve been saying for the last 18 hours or so, keep stops on short EUR/USD positions tight.
