The Reuters report that Ireland is in fact in talks with the EU on a bailout should be short-term bullish for EUR/USD but the market ran into a very big seller as the news hit the wire.
We slipped all the way to 1.3703 on the order but we’ve since steadied. We trade now at 1.3720. Expect markets to be razor thin for the balance of the day with many traders chopped to ribbons in today’s volatility.
If the market has managed to get long on an intraday basis, we may see some “sell the news” price action ahead.
Irish yields are tumbling o the report, now down almost 100 bp on the day.
