Improvements in European stock markets, especially the DAX, are adding fuel to the rebound in the euro, taking out offers up to 1.2260. More offers seen at 1.2290/00 with stops above.
Cable is like a runaway train, up to 1.5637.
The WSJ is carrying a story about potential haircuts for bondholders of Spanish banks that is helping the euro.
They conclude that “politicians are likely to ignore Mr. Draghi, no matter how intently he waves his scissors,” because forcing losses could “be the final nail in the coffin for banks attempting to raise funds in the senior unsecured bond market.”
