It’s not entirely clear the market has recovered from the Geithner mis-quote but it is clear that various elements of the reflation trade continue to rebound, helping underpin EUR/USD. Oil is well above session lows, now at $53.20. The S&P is more than 2% firmer and US yields have edged a shade firmer as well. Continued signs that the US economy is try to trough is the main catalyst again today.
EUR/USD trades at 1.3562 after a spasm (up to 1.3650 from 1.3465 before a dip to 1.3500) following the Geithner “quotes”.
