Risk aversion eased overnight as US equities came storming back late in the session and helped brighten moods in Asia and Europe. GDP figures from the eurozone have dampened the mood, helping undermine the EUR. Also hurting are concerns that EU officials will make sterling weakness a central focus of the G7 meeting, A draft of the communique generally leaks around mid-afternoon Friday as the meetings get underway, so we could know in a few hours.EUR/USD has pulled back to lows of 1.2840 so far.
EUR/GBP opened near session lows as a result of the G7 jitters, now around 0.8845, down from 0.9025 earlier in the day.
Price action is particularly jittery today. We’ll have more on why that may be shortly.