Goldman Sachs and Morgan Stanley have both denied they have big exposures to the short covering rally in Volkswagen. Morgan Stanley also said it is not the prime broker for Citadel, the big hedge fund firm, and it has virtually no exposure to it.
US equities slipped back to unchanged but they are since bouncing back, now up 1.9%. EUR/JPY has bounced as well, now at 119.40. EUR/USD is up to 1.2500 again. 1.2585 remains key resistance near-term. A break targets the 1.2840 area.
