Euro buyers on the dip
It was a quick race to the exits on the ECB sources story from Bloomberg but the dip buying from the low of 1.1292 was impressive. It's all the way back to 1.1340 from 1.1375 before the headlines.
For me, a straight-line drop and a bounce like we're seeing is the perfect time to watch the Fibonacci levels and, sure enough, it's been the 61.8% retracement that's restrained the bounce so far. If that gives way, I expect it will be a quick trip back to the pre-headline levels.
That said, the fundamentals are still in charge and Draghi speaks very shortly on a central banking panel. That will give him an opportunity to set the record straight and my guess is that he's not happy about a 2% euro rally.
