We seem to be correlating again. EUR/USD sits at the base of its recent ranges and that has helped drag gold down along with it. The yellow metal is making fresh session lows around $1132 as we write. Oil si down on the day, losing 50 cnets, now at 79.15.
Greece remains a major concern for the market with the ECB offering no flexibility on its collateral rules. Speads versus bunds continue to soar, now at 276 bp. Credit default swaps for Greece are soaring as well.
Central banks are presumed to be buyers ahead of 1.4450 but we’ve not heard any specific reports of buying as yet. Stops are no doubt building in the 1.4440/45 area.