French PM: Capitalist system cannot achieve stability without order between currencies

French Prime Minister Fillon (the lowest profile French PM in memory) says that the world capitalist system cannot function without some order between currencies.

This seems like a mild protest over the strong EUR but also a jibe at China with its essentially fixed exchange rate regime.

EUR/USD trades with a soft tone as the dollar rebounds broadly this morning. Latvia remains a concern as credit default shops on Latvian debt continue to widen. They are now at 514 bp, 34 bp wider on the day.