EUR/USD is in recovery mode after slipping as low as 1.3289 late in Europe. Talking heads are coming up with all manner of possible euro zone solution that don’t involve the ECB, but I don’t put much stock in the forecasts. The IMF is already stretched for resources do I don’t think they are a viable option for something large at this stage and the ECB has ruled out lending to the IMF to bolster its lending power.
How about the Fed? Even Ben Bernanke ain’t crazy enough to lend to European sovereigns…
Offers are seen on rallies to the 1.3350/55 area now with small stops seen at 1.3360. Solid buying is seem ahead of 1.3260 support.
