Look for thin markets in New York this afternoon as players seek the safety of the sidelines after an extremely volatile US morning.
The ECB meeting tomorrow is expected to be a non-event except for the press conference in which Trichet will be savaged by the press for reversing field on accepting G Reek debt as collateral, regardless of its rating.
There is a minute chance that the ECB could announce a decision to buy European government debt outright, essentially printing money in the process, but it is hard to imagine the hard-money types in Northern Europe going along with that idea just yet. Better to wait for a REAL crisis…
1.2880 remains resistance on rebounds. Stops from intraday specs reside just above that level.
In cable, the base of the recent range in the 1.5130/40 area should provide resistance on rebounds as well. It trades now at 1.5117.
