EUR/JPY is getting a lift from comments from the commissioner of the SEC saying she is working with FASB, the accounting body, to consider flexible interpretation of mark to market accounting rules. That would be great news for the banks as they would not have to write down asset as aggressively and then raise capital to cover the losses.
EUR/USD lifted up to 1.2915 on the news, led by buying by a US money center bank. Real money sold into the rally. EUR/JPY reached 118.35 on the blurb on CNBC.
