It took a while but we finally closed the gap that formed at the opening of the trading week. We traded as low as 1.3497, coning within 7 pips of Citibank’s stop on their longs taken at 1.3590 the other evening. More stops are seen in the 1.3580 are but bids are mixed in as well.
Greek bond spreads are back above 400 bp , now at 430 bp, ahead of the meeting with the EU and IMF on Monday. Traders fear the bailout process will remain protracted. Meanwhile, as Trichet warns, Greek banks are having liquidity problems. Not pretty.
Heavy offers are seen on rebounds to the 1.3550/60 area, traders report.
UPDATE: We’ve dipped as low as 1.3491…