A recession by any other name still feels bad, but Eurogroup head Juncker says Europe faces a “technical recession” but not a “full” recession. He does not favor pan-European stimulus and says EU budget rules (deficits limited to 3% of GDP) are flexible enough and should be respected.
Dealers note central bank interest to sell EUR/USD again today on rallies with Eastern Europe particularly active. As has been the case of late, when these central banks intervene to support their domestic currencies against the dollar, they then have to turn around and sell euros to keep their reserve assets in balance.
EUR/USD and EUR/JPY trade with a heavy tone in early US trade, down at 126.15, down over a yen since the US open. Next support for the cross in in the 125.45/50 area.
