This comment won’t have helped EUR/USD. Part of the reason EUR/USD went up this morning was because the USD was being punished for Obama’s plans for the US financial sector. The German Finance Minister is now suggesting that Germany is also going to be doing something and that’s removed a support for the euro.
At the same time general risk aversion has ratcheted up a notch with European stocks extending earlier losses.
Cable has given ground quickly, presently down at 1.6180. Thin Friday trading conditions will not be helping price action in cable, which has been getting increasingly erratic.
Back with EUR/USD; reports in Asia overnight had sovereigns buying actively below 1.4100, with China’s name mentioned. Gotta think there’ll be some wariness of renewed interest sub 1.4100, especially if we get to 1.4070/80 area.
