EUR/USD has retraced 50% of the decline from 1.3570 to 1.3462 and is now consolidating in the low 1.35-teens. It has been one of the steadies weeks in memory, so far. All the major issues continue to percolate like sovereign debt, inflation build up, central bank over-reach, but nothing has jumped out to capture the imagination of the market.
Elsewhere, traders report that real money accounts continue to accumulate USD/JPY, keeping dips shallow. The heavy flows suggest money is coming out of Japanese financial markets, returning to the US or that funds are hedging forex exposures, factoring in a weaker JPY into their investment thesis. USD/JPY is steady around 83.90.