EUR/USD is coming under pressure, presently at 1.3995. Reuters are carrying a headline “ECB’s Orphanides says dealing with an extreme episode of financial instability and a truly globalised economic downturn”- speech text.
I’m awaiting details of the speech, but the headline isn’t exactly going to help risk sentiment and will be helping undermine likes of euro and sterling.
The market will also have noticed Noyer’s earlier comment that IMF SDRs cannot replace currencies for reserve purposes, which will help alleviate fears BRICs set to aggressively diversify out of dollar.
