EUR/USD is enjoying a renewed rally this morning after overcoming resistance at 1.2845. Topside levels to watch now are 1.3003. That was the October 10 high from which we failed miserably and slid to 1.2330. As we saw with USD/JPY overnight, there are pent up sellers on rallies, usually corporates who missed hedging opportunities. They may be happy to sell strength having witnessed a very deep and expensive pullback.
Commodities and equities are all rallying with currencies today as risk aversion recedes from extremely high levels.
