We’re back in risk-loving mode. Central banks are easy, Europe is stabilizing and even the US housing market showed a positive data point…

EUR/USD has reversed all its earlier losses thanks to heavy buying of European bonds by the ECB today. This has helped fuel a rebound in equities. With US yields higher, the USD/JPY leg of EUR/JPY should be well supported. That cross is back up to 111.00 from below 108.00 earlier this week. It is looking like the risk barometer it once was once again…

Asian central banks were rumored sellers of EUR/USD earlier in the day around 1.3185 and we’ll see if they are still hanging about…