The greenback is seeing a bit of mild profit-taking after making a run at 1.2500 on the downside in EUR/USD and 94.00 on the topside in USD/JPY. US equities have recovered early losses and are trading to the plus side as the market awaits comments from both Obama and Bernanke. Obama’s mortgage plan has already been released on paper, so Bernanke is the bigger event risk this afternoon.
Also on the wires, US Senator Graham is on the wires, repeated comments made overnight in the FT that nationalization remains a possible option for US banks. Graham is a Republican and is not a ranking member of the banking committee, so his opinion is just on of 100 senators; it carries no particular weight.
