Back in the 1992 presidential campaign, there was a sign on Bill Clinton’s war room which reminded staffers “It’s the economy, stupid”. The major bounce in EUR/USD in the last half hour or so is partly on the Greeks edging closer to being able to complete their bonds swap but it is also largely on the news that the Fed is considering yet another form of bond-buying, this one somewhat watered-down, but still a surprise to the market.
Stops above 1.3170 remain in focus. If EUR/USD can’t trip them today on a potential Fed shift, it’s even more of a dog than I thought…
