EUR/USD eased as low as 1.3824 after triggering stops below 1.3840. We’ve quickly rebounded to the 1.3860 area.
Probably best to see how the euro zone summit turns out tomorrow before embarking on big new trading bets. If Geithner brings the post-Lehman tool kit of TARP, TALF and all the other alphabet soup of programs that helped stabilize markets in 2009/2009, and those tools are borrowed by European leaders, then the crisis might be mitigated in the near-term.
If they merely continue to status-quo with minor tweaks around the eges to get past the latest crisis (Greek collateral issues for Finland, etc.) then the euro will remain pressured.
