So, we’ve had a surprise ECB rate cute and a forecast for a recession from the brand-spankin’ new ECB president.
The Greek government has resigned, unresigned, held a referendum, canceled a referendum…at the end of the day the referendum is off the table, the opposition has gotten religion on the need to accept the terms of of the EU/IMG bailout and the slippery Gerorge Papandreou is still in power, at least until tomorrow’s confidence vote.
EUR/USD remains remarkable well-behaved, selling off to the 1.3660 area on the ECB rate cut/recession forecast before bouncing back to the 1.3790 area where we trade now.
Stops continue to build above the key area of resistance around 1.3825/35. Stops are building above that level and are looking vulnerable near-term.
What can’t go down often goes up, especially as European banks continue to deleverage, bringing money home…
