Reuters just completely botched the context of the Geithner comments. CNBC ran the tape of the remarks and they were very non-committal. He said he hadn’t read the remarks from China but looked forward to discussing them, yada, yada yada…The comments were nothing like the declarative headline on the US being open to dropping the dollar. Journalistic mal-practice at its best….
That said, some damage has been done and the market may still be trying to get back EUR/USD short positions. This may take a while to settle out…
For what its worth, Geithner is scheduled to speak on CNBC around midday in New York, so expect him to reiterate the strong dollar policy in vociferous fashion.
