Fresh fears that Ireland will be forced to restructure Anglo Irish’s debt have taken the rug out from under markets this morning, S&P futures have lost most of their early gains on strong earnings and the EUR has sold off heard, triggering stops below 1.3050.
Complicating matters for Ireland is focus on the Prime Minister’s “social life” after a stumbling performance on a radio earlier this week. He has been forced to apologize, saying he will conduct his social life “more cautiously” going forward.
EUR/JPY has taken a tumble as well, helping send USD/JPY briefly as low a s85.60. BOJ bids remain rumored at 85.60. Judging by the quick bounce to 85.80, it looks as though the market respects those bids, at least for now.
