EUR/USD has extended its rally to the 1.3320 level. Dealers say Somali pirates have been selling dollar-denominated booty in protest for the US Nay SEALS croaking three of their executives over the weekend… Kidding, kids. Kidding.
The buck is under pressure this morning with the correlation with US equities having broken down today. A “surgical” bankruptcy for GM is a distinct possibility with the government seen having to fund upwards of $80 bln to recapitalize the slimmed down company and offload under-performing nameplates like Pontiac and Buick…
Stop loss hunting is the main preoccupation for the market today. They just got another batch above 1.3320 and their eyeing 133.65 stops in EUR/JPY as we write.