Forget the nibbling around the edges the Fed did at the last meet….the recent data has the market concerned that a fresh round of full-fledged quantitative ease will be unleashed to try and cushion the rapidly cooling US economy. This has prompted a liquidation in the dollar across the board. EUR/USD is back above the 1.2700 level, now at 1.2713.
Elsewhere, Rehn says he fears a double dip in the US will hurt the EU economy….No kidding.
1.2725 is resistance for EUR/USD near-term with more at 1.2750/55. Stops are seen above both levels.
