EUR/USD and other “riskier” assets have enjoyed a rebound this morning after mildly firmer equity markets in Asia and a move to cover shorts after the assault on 1.25 from above failed to eliminate the objective. Reality could soon bite, however, as jobless claims at 13:30 and Philly Fed at 15:00 loom. Neither is expected to be particularly upbeat, so risk aversion plays could quickly come back into vogue.
1.2700 is capping EUR/USD at the moment with more resistance eyed at 1.2725. Also in that neighborhood is the 38.2% retracement of the 1.3093/1.2714 decline.
