Continued commodity strength, jitters over the auto bailout and lessening of risk aversion around the globe are conspiring to weigh on the dollar today. The EUR reached 1.3499 and 90.22 against the dollar and pound respectively, taking advantage of a somewhat less frenzied pace of ease/stimulus in Europe while the US and UK continue to experiment with monetary and fiscal policy on a vast scale.
A 1.3500 barrier option is said to be in play and is under attack as we write. Upside targets lie at 1.3608, the 50% retracement of the 1.4866/1.2330 decline.
