Factory orders were much weaker than expected, adding to the string of weak US data.
Many question the logic of the Fed doing more to lower US long-term rates with rates already deeply negative in real (inflation-adjusted) terms. I’m one of them.. Better for the Fed to target some sort of program to small business or something along those lines. Another fire hose of liquidity isn’t likely to do much good…
EUR/USD is a buy on dips near-term as the market looks to trim a heavy short position amid fears the EU may force through fiscal union to deal with the never-ending sovereign debt crisis.
1.2510 is next resistance for EUR/USD; Stops are just above that level.
