The 1.2850 battle was fun, but far too brief for my tastes…
Lets look at the other markets. S&P futures are up 1.4% after bouncing from 1040 support again yesterday. The poor ADP ups the odds of the Fed relenting and buying more treasuries to try and keep the economy afloat. This helps support asset markets and commodities. It helps stocks because it increases the liquidity washing around the system (in theory) while it helps commodities by pushing investors into “hard assets” for fear the central banks are debasing the currency.
Not a dollar-friendly scenario, at least in the near-term.
Look for EUR/USD to consolidate int he near-term above key 1.2780 support. 1.2866 is solid resistance, the 20-day moving average.
