Signs that the US economy, specifically the labor market, may be coming back to life, are helping ease geopolitical and European sovereign debt jitters.

EUR/USD and AUD are being bought back, as well as EUR/GBP as traders cover short positions.

Medium and long-term EUR bulls are taking heart in the bounce off the 200-day moving average in EUR/USD this morning.

I’m just getting reports that the BIS is already selling into the AUD and EUR rallies…