Hard to imagine but it seems as though risk aversion is lessening as a Friday afternoon wears on. News that GE has finally cut its dividend after months of market speculation that it would be forced to do just that may spark a bit of “sell on the rumor/buy on the news” reaction in equities. Some fear a short-covering rally into the close on Wall Street today given the unambiguously bad news absorbed so far this week. The break to new lows in the S&P and the subsequent recovery from those lows may prove to be the catalyst. 741.00 is the level to watch.
EUR/USD trades at 1.2705, shadowing cable as that pair stages a late-session rally, now at 1.4340.
