Fed’s Lockhart says Fed still has tools

Just because rates are near zero, the Fed has not depleted its tool kit, the president of the Atlanta Fed said. He says the incremental approach of the early part of the crisis must progress to the point where there is a coherent plan.

USD/JPY may have lost its links to stocks but EUR/USD is right in sync, bouncing back to 1.2695 as the S&P rises back into the black. USD/JPY is edging firmer, now at 94.33. Session highs are at 94.42 while the January highs are at 94.63.