Markets seem to be soothed by the EU adoption of the UK approach of guaranteeing bank debt and recapitalizing the banks. Many were nervous that the vague G7 statement would leave markets unimpressed and put the downside back in play both in equity markets and in the JPY crosses.
EUR/USD opened a cent higher at 1.3500 and now trades at 1.3575. Likewise, EUR/JPY opened at 135.87 after closing around 135.00 Friday evening in New York. The G7 has thrown a massive support package at the markets over the last two weeks, much of it yet to be implemented. If the prospects of literally trillions in extraordinary aid does not steady markets soon, it is hard to imagine what will…
