EUR/USD’s rebound has stalled at 1.4300, below the tops in the 1.4345 region. Heavy stop-loss buy orders are seen in the 1.4350/60/70 area. Small stops begin as soon as 1.4310, dealers report.
EUR/USD has gotten a bid from the notion that Lagarde, the presumptive IMF managing director, will rubber stamp the disbursement of the next aid tranche to Greece, especially since France is adamantly opposed to a Greek restructuring (as is the ECB). That puts two out of three of the “troika” on the same page.
Shares of Dexia, the bank that caused the earlier downdraft, are up 7.1% and leading the Stoxx 600 index…Go figure.