By all rights, having probed above the 1.3940/50 level several times, we should have had some topside follow-through. That has not been the case, however and news that Greece will have a harder time passing its next bailout plan along with concerns about the impact of deep haircuts on the European banking sector are prompting some liquidation of longs.
It looks as though the Fed’s RALF (real asset liquidation facility) is being employed.
Afternoon lows of 1.3818 are being overcome as we write.