EUR/USD trades with a heavy tone despite reports of buying by the BIS. Disappointing earnings from GE and BofA have overshadowed good reports late yesterday from Google and IBM. Growing pressure on China to adjust its apparent currency peg, now around 6.83 to the dollar, is prompting some profit-taking in EUR/USD and the commodity currencies as traders wonder if China will be able to grow 8% forever with a less undervalued currency.

Support is at 1.4845 near-term and some trailing stops are eyed just below that level, yesterday’s low.

New Yorkers are wary of selling weakness at their open as we have inherited the market at range extremes several times this week and spent the rest of the day going the other way.

Next up for the market is the TIC report. It is notoriously difficult to interpret correctly but traders tend to react negatively to big outflows from the US…

EUR/USD trades now at 1.4872.