The market is content to look past the ECB and hitch its wagon to the reflation trade. Probably the most consequential announcement of the morning was probably Chinese PMI, which rose to 52.4 and non-manufacturing PMI rose above 55.0. Also helping raise risk appetites was the FASB decision to ease mark-to-market rules. Frosting on the cake was the mischief-making from the Russians at the G-20, calling for a “study” on a reserve currency after that issue as the G20 drew to a close, an issue the market had put on the back-burner.
Shares are 2.1% higher in early trade while oil is over 3% at $51.50.
1.3500 remains resistance on rebounds in EUR/USD with more at 1.3590. 1.3330 is solid support on pullbacks. We trade now at 1.3440.