"With the breakdown of Euro Area GDP data and US Jolts figures
the ‘highlight’ of today’s economic news, the FX market will go on
watching bonds. There is no catalyst for EUR/USD to fall back unless
amnesia fades and we remember the implications of the US data. That seems unlikely, whereas stronger German labour cost data is yet another sign of stirrings in the heart of the Euro area."
"No matter that the last weeek has seen encouraging US data, or that the Greek debt talks remain quagmired, Treasuries are doing better than Bunds and the Euro’s doing better than the dollar."
"The technical folks tell me that it takes a close above 1.1315 to signal a test of the March 1.1470- high. The Bund/Treasury spread tells me there’s a fair chance of that happening."