The report in the WSJ this morning that BofA and Citi need more capital according to the stress test is jockeying with the swine flu story for supremacy in market mindfulness. Both up risk aversion and send the stock averages lower which help keep a lid on EUR/USD.
EUR/USD is coing under pressure as we write, dipping to a fresh session low at 1.2980. We often set session lows right out of the gate in New York trade, so we’d be reluctant to join the selling down here just yet.
