EUR/JPY is up better than two yen since talk of an emergency G7 meeting was first floated on the Nikkei website abit over an hour ago. . As Quant pointed out, with a regularly schedule meeting set for Friday, what can we expect from a quicky? Probably not much. $450 bln in additional Fed liquidity to last over the turn of the year and several more European deposit guarantees have done little to brighten the mood, so what can the G7 add, other than a lame statement of support? A coordinated rate cut is called for; do it, and get the hell out of the way. That’s what they should do.
EUR/JPY trades at 137.05 after reaching 137.25. Stocks are down 320 after being down 800 at the worst.
