I struggle to understand Mr. Market sometimes. He gets all excited when the news gets bad, because if we’re lucky, some of the central banks will piss into an ocean of global liquidity….
The fact that there is virtually no demand for all that liquidity which tends to stay put within the central banks themselves? Pfft. Details. Trivial details…
The good news is that we have edged away from the global abyss this week and risk aversion has bee dramatically trimmed. The bad news is that little has changed fundamentally save for the prospect of another euro zone band aid for a problem that rightly requires a tourniquet.
1.2625 is vitally important resistance just above the market in EUR/USD. Stops are eyed just above that level and looking vulnerable.