Not today. Just what the doctor ordered. Prices have been confined to a 1.3610/1.3710 range in the US time zone in EUR/USD and 136.50/138.90 in EUR/JPY. In any other market, these would be great ranges but these days they’re a walk in the park.
Financial stocks remain dog meat, casting a pall over risk-taking in all the markets. Some hope markets will come out of the weekend in better shape after a G7 meeting (where mark-to-market accounting could be suspended) and the Lehman credit default swap auction out of the way. If so, look for stronger commodity currencies and a weaker JPY. EUR/USD would be a sideshow but will probably be dragged higher by the crosses.
