EUR/USD sits at 1.4225, holding up well. China buying set the tone early. Risk appetite has improved this morning, with European stocks up (FTSE 100 about 1/2%, DAX 30 about 1%), while S&P futures are up 5 points. This is helping likes of euro, sterling, aussie, canadian dollar.
Reports that China and Malaysia are considering trading between themselves with the yuan and ringitt instead of US dollars has also helped undermine the greenback somewhat.
Some see comments made by Bernanke yesterday undermining the dollar. While the Fed Chairman said he expected the U.S. recession to end later this year, he also warned that failure to ensure long-term fiscal sustainability would mean there would be neither financial stability nor healthy economic growth.
EUR/USD technical resistance at 1.4245/50, buy stops reported just above there.
