Dealers have had a busy week and many are pretty much ready to wash their hands of the market and begin looking to the weekenhd. Algorithims willl take up the slack, marching EUR/USD higher and lower in locks-step with the S&P until a pocket of liquidity is identified. Then, they’ll all run the other way.
The biggest risk for the rest of the day is the stray “tape bomb” coming out of London from some unidentified G-20 official spouts off to the wire-service reporters.
EUR/JPY found a pock of liquidity at 126.80 a short while ago and has consequently firmed to 127.15. Stocks have firmer and are up a bit less than 1% at mid-morning in New York.
Keep an eye on the 16:00 GMT fixing. We could see another wave of Swiss sales from long-term accounts at that time.