President Obama says he is pleased the US financial system is showing some return to normalcy.
As noted here recently, credit spreads have been narrowing, volatility levels falling and even economic indicators are returning back to levels seen in the pre-Leham days of last fall. That should be enough to keep economy on a recessionary path after a decline onto a depressionary path some months ago. That is one important factor in the recent weakness of the greenback; deleveraging has subsided and loans that once were being called are now being rolled over.
EUR/US has paused after approaching the 1.3800 level. It is consolidating right near its highs.
