A research piece from Barcap says that if the US dollar were to fall to 55% of global reserves, the United States would be in danger of losing its AAA bond rating. Stripping out the reserve status, Barclays says the US is a AA credit right now.
EUR/USD is firming toward highs not seen since late yesterday afternoon. A few shorts have covered on the break above 1.4130 which had capped bounces during the US session. 1.4160/65 remains resistance afte two stales in that region yesterday. Reports of barrier options at 1.4200 will likely keep the EUR from running much above 1.4160 today.
