The seasonal impact of auto plant closures that are a part of the jobless claims calculation come out of the data today, so we should get a less distorted reading of the labor market with this morning’s data. The market expects claims to rise to the 575,000 area.

New York picks up the baton with EUR/USD in the middle of its overnight range, now at 1.4055. Comments from the Chinese that they are maintaining an “appropriately loose” monetary policy have cheered the markets after yesterday’s scare. Let a thousand bubbles bloom.

Despite the bounce from the 1.40 area in EUR/USD, sentiment seems to be shifting in EUR/USD. The market is looking to trim unproductive long positions on rallies now than to reflexively add to shorts.