Watching the slow-speed collapse of the euro zone as a result of it structural deficiencies is getting a bit boring for traders . They are turning their attention back to the US and to the global economy.
The US debt limit debate is beginning to prompt some jitters at long last as even if a deal were done today it would be difficult to pass it into law by August 2. Odds are growing by the day of a short-term deal to raise the limit while negotiations continue.
Traders are also focused on QE3, though Bill Gross just said he expects the Fed to guarantee “lower for longer” rather than buy additional asset.
Upbeat Chinese data overnight is a factor today as well.
Traders note another round of BIS buying in the 1.4040 region last time down. We trade now at 1.4072.
