So the G20 is going to address global imbalances; that’s bad for the dollar versus the majors? Seems to me there is a target-rich environment in China where the currency is fixed to the dollar at around 6.83, Re-peg that around 4.00 or4.50, where it belongs, and EUR/USD would be an after-thought as far as global imbalances are concerned.
Ohter macro factors at play this morning include the FDIC’s growing cash needs. The agency is prepared to turn to banks for its needed funding rather than to the US Treasury due to inter-agency animus.
Weber’s blessing of the firmer EUR exchange rate surely didn’t hurt the rally.
The last level left for technicians to key off of near-term is 1.4866, the post-Lehman high from one year ago today.
