Indicators supported our base case:
* Spanish bond auctions auction on Thursday was well supported.
* Bank of Canada begins to sound bullish.
* IMF upgrades global growth expectation.
* Bundesbank says German economy is in good shape.
* some bullishness out of the UK.
Strong US data May - July may change things enough to keep USD from weakening on the election season turmoil.
It is our view that it is essentially short term speculation and noise flow that is pressuring EURO currently.
It is also our view that commentators are too positive in spinning US data and too negative in spinning China and other data.
Since the real bigger drivers are solid in neutral mode, the shorter term drivers will dominate.
Bottom line: Will the Fed cause an imminent material change in the direction of EURUSD in favour of the USD?
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