EUR

Guys

Is it a good idea to short the Wur/Jpy now - its struggling to get past 113

1.3 still holding in eurusd

This helps explain the success of the recent Euro zone bond issues. The widening in the Euro zone current account deficit likely matched a widening in China's current account surplus (cause and effect) and China consequently had to recycle the surplus abroad.

Euro zone current account deficit widens in May

19 Jul, 2010 @ 04:06 am BST | written by ecPulse.com

Euro zone current account seasonally adjusted showed a winded deficit in May to 5.8 billion euros compared with the prior deficit of 5.1 billion euros which was revised to 5.6 billion euros.

The non-seasonally-adjusted reading also showed a widened deficit to 16.7 billion euros from 6.9 billion euros, revised downwards to 7.5 billion euros.

This mornings WSJ article probably aided the bid in EUR from the lows:

WSJ: Former PBOC Adviser: China Should Reduce Dollar Assets In FX Reserves
DOW JONES NEWSWIRES

China should reduce the amount of U.S. dollar-denominated assets in its
foreign exchange reserves in favor of those denominated in other currencies or
other types of assets, former People's Bank of China adviser Yu Yongding wrote
in an article published in the state-run China Securities Journal on Monday.

China doesn't disclose detailed information about the composition of its
foreign-exchange reserves--at nearly $2.5 trillion, the world's biggest--but
economists have estimated 65%-70% of the reserves are invested in U.S. dollar-
denominated assets, mostly U.S. Treasurys.

...

macrosam
ECB reports show banks just drained their deposits at ECB