EUR/USD firmed briefly to the 1.2485 level, a New York high, as US equities jumped 1%. That rally was sold into on Wall Street and in the currency markets with a sell-the-rallies mentality still predominant. Lower interest rates are being factored in over the next two weeks from the Fed, ECB and BOE but are not yet having the desired effect of decisively turning equities higher and thawing credit markets completely. One upbeat factor getting some play today is talk that asset allocations are being adjusted ahead of month-end, which is also year-end for many US mutual funds. The flows are said to be out of Treasuries and into equities.
EUR/USD trades now at 1.2475 and stocks are up 0.25%.
