Risk appetites have not quite reached anorexic levels but they are smaller this morning than they were before the Irish jitters surfaced. Since then we’ve had comments from a European central banker suggesting the ECB won’t be taking the training wheels off the banking system anytime soon, reminding traders that Europe, while in better shape today than at the beginning of the summer, still has a long way to go.
US equities have given back early gains, now slightly lower on the day after stalling near the top of recent ranges around 1130…If they slip further, EUR/USD may see some more retrenchment after stalling at the 76.4% Fibo of the 1.3334/1.2588 decline earlier today.