EUR-USD fell after the German ZEW, which came in at 39.5 and was lower than the 47.8 consensus. Eurozone industrial production rose 0.5% m/m and was also weaker than expected, which added to the softer tone. Losses were limit to 1.3960 and European accounts remain good buyers on dips, with a sustainable move above 1.4000 still the focus for many intra-day accounts amid firmer equity markets. Option expiries at 1.4000 are likely to lead from here and larger interest above 1.4100 are only likely to feature on a significant equity market rally.
U.S. Treasury Secretary Geithner said U.S. policies are designed to lay foundation for a strong dollar. He said there was a need to sustain efforts to promote the global economy's recovery. He added he was seeing a return of confidence in the U.S. banking systems and an increase in corporate bond issuance. Geithner stressed the U.S. commitment to bring down fiscal deficits.
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