EUR/USD managed a bounce to 1.2730 after Germany’s Merkel said that Germany would pay into the ESM rescue mechanism early if other EU nations would follow their lead.
The bounce did not hold and EUR/USD has slipped back toward session lows… We’re now at 1.2690.
While the Fed is seems as hell-bent on putting another round of QE in place, there are voices of reason on the FOMC like Richmond’s Jeff Lacker who is very reluctant to go there, especially in an election year.
Trend lows at 1.2665 is next support for the market, followed by a solid zone of support from 1.2625 to 1.2590.
