Fears the auto deal may turn out to be “son of TARP” and take more than one legislative stab to get it passed has sent stocks back into the red and has prompted a sharp pullback in EUR/JPY after its earlier rally reached 121.48/50. The cross has slumped back to 120.60 on profit-taking as stocks pulled back.
EUR/USD is down to 1.3018 and USD/JPY to 92.60 after absorbing heavy selling at 93.00 only to fail to follow-through to the topside.
Just crossing the wire now is the November US budget deficit. It reached a record $164.4 billion.
