After being charged with the task of solving the EU sovereign sovereign debt/banking crisis in a week by the G20, European leaders have wisely downplayed the odds of a comprehensive package being unveiled. The market is now geared up for $2 trln in buying power from the EFSF and will be disappointed if Europe does not deliver.
EUR/USD is sharply lower after stalling ahead of very important resistance at 1.3935.
1.3730/50 remains important support on dips. We bounced from there on Friday afternoon.
