Fear of bank nationalization of the big banks is sending stocks lower, bond yields lower and the dollar lower, a rare clean sweep. BofA and Citi are each down about 30% as investors fear their equity will be wiped out over the weekend if the US government steps into to completely nationalize them.
It is stop loss city in USD/JPY as longs bailout with the 94.46 high put in yesterday looking quite formidable now. Selling accelerated below the overnight lows at 93.55. Even more stops were tripped below 93.25. and 92.75/90.
92.05/10 is next support.
In EUR/USD, 1.2920 and 1.2940/45 are areas of resistance above the market.
