EUR/USD is rebounding, gettin a lift from buying in EUR/GBP. The cross could be getting a squeeze from the Mid-East selling of Cable that Gerry notes below.
trichet did not go out of his way to try and rein in EUR strength despite a 10 cent rally in that pair since the last meeting. We can only conclude he is OK with EUR strength.
1.4180 is intraday resistance; expect short-covering to accelerate if broken.EUR/USD trades at 1.4165.
Higher oil prices +2.6%, firm gold ($975) and higher bond yields show the reflation trade is rebounding with the dollar leg lagging.
