It’s looking like a bit of a risky world out there. The US Federal Housing Administration says its reserves have fallen to 0.53% of the total amount insured, below the 2% required by law. Look for Uncle Sam to dip further into his pocket to bail that agency out.
Things aren’t much better in Germany, where the government is rumored to be injecting EUR 3 bln into troubled banking giant WestLB, according to sources quoted by Reuters.
EUR/USD is choppy, jumping to the 1.4930s after holding 1.4900. Talk of Asian demand was rumored at the lows. We’re giving them another try after the West LB news…
