The US financial system is in the early stages of repair and some credit markets are working again, the Treasury Secretary says. Risk premiums are coming down, he notes, but ads the recovery in the economy will be slower than normal. An enormously challenging period lays ahead, he says. Unemployment will continue to rise even after the growth returns, he warned.
EUR/USD is running into supply on rallies and trades now at 1.3858. It is signficant that the dollar bears were unable to exploit the negative headline to the TIC report.