CNBC reports that the Fed has lined up only 20 counterparties for its TALF program which is meant to restart the asset-backed securities market. The program kicks off today, if I’m not mistaken. This bodes ill for the TALF which has been highly touted by Bernanke and others as a key to restart lending to consumers and small business, the heart of the US economy.
US equities are dipping on the news and a bit of risk aversion could be seen as a result.
1.3798 is next resistance for EUR/USD, followed by 1.3864, the 61.8% retracement of the drop from 1.4737.