If I’d told you this morning that ISM had dropped below 40 and US auto sales fell 30-odd percent, chances are you would have bet heavily that the dollar was heavily on the defensive. Unless you bet on the heavily automobile-exposed Canadian dollar, you’d have been wrong. Markets seems more concerned with the slowdown in the UK and Europe today than they do with the slowdown in the US.
EUR/USD has fallen back to 1.2625 support. 1.2585, the top of the 1.2325/1.2585 consolidation range until we broke higher last Tuesday, is next support.
