Risk aversion remains the theme this morning as EUR/USD fell close to recent lows in the 1.33s before a rebound. Anticipation of a rate cut from the ECB on Thursday and fears that European stimulus will be too little too late to stave off a deep downturn are helping undermine the euro. Oil continues to ease as the markets factor in a very slow economy in 2009, undercutting the likes of AUD and CAD once again.
Offers are seen toward 1.3480 on rebounds this morning while small stop-loss buy orders are perched just above. Heavy selling is seen toward 1.3525/30.
