EUR/USD has rebounded toward the 1.2885 area where prices stalled after earlier talk of buying of EUR/USD by the ECB and of GBP/USD by the BOE caught the market off guard. Technically, EUR/USD looks like it wants to rebound toward the 1.2965 area later today or early Monday.
US equity losses have moderated, helping underpin EUR/JPY above its earlier lows while continued silence from the US Treasury on yesterday’s comments from Geithner on China leaves one to conclude the new administration will be more protectionist than the old, a potential major problem for the US, a net importer of capital.
