EUR/USD has resumed its slump as the mid-morning rally to the 1.3900 area was unconfirmed by any of the other currency pairs, nor the commodities markets.
Belarus is a rare point of focus for the market this morning as it joins Latvia on the IMF’s critical list. Any blow-up in Eastern Europe has negative ramifications for the European banking system…combined with the unwinding of the reflation trade, it is a strong dollar day, for a change. Ballooning German deficits are a factor in the euro weakness as well.
1.3825 remains suspitiously firm intraday support on dips. Traders reported good demand on dips to that level earlier, some apparently options-related. EUR/USD trades now at 1.3845.
