EUR/USD did a penny on the upside in little more than an hour with short-covering gathering pace as the Fibonacci retracement at 1.4700 was overcome. Dealers speculate that some of the US corporate buying today may be because firms that were late to hedge against dollar strength are now lifting some of those hedges on the assumption that the dollar will resume its slide after the mortgage rescue.
Prices have reached the 1.4798 level thus far. Oil prices have been halted on NYMEX for 5 minutes to allow order to return to that market. Prices are up over $10 there to $115. Expiration of the October contract is playing a big role.
