Short-covering is the name of the game this afternoon as the US equity rally helps sooth earlier fears about European sovereign debt ratings after the Fitch comments this mroning cast the UK, Spain and France in a negative light.
We’ve bounced from ahead of 1.3530 support and traders eye the 1.3705 level as a break would serve as a trigger for a measured-move technical rally to 1.3875-ish, if the charts work their magic. Resistance in the interim is at 1.3630/65.