EURUSD Bounced Earlier Today But It Wasn´t a Particularly Impressive Bounce

Well-there was a Euro bounce today, but we´ve seen bigger bounces off bean bags in quick sand quite frankly. Let´s just say it was more Nicole Kidman than Dolly Parton.

The Euro bounced off 4-year low this morning, but the outlook still looks bearish – it´s been slipping back in the last couple of hours or so.

After a four-year low this morning on ongoing euro zone sovereign debt worries and fears that austerity measures will hurt growth, the currency pair floated up a bit as traders cashed out of short positions.

At 1152 GMT, the EURUSD limped back up to $1.2360, but it´s still 7% down in May month, and 14 percent down in 2010 making it the top winner for bears.

The next key support is $1.2135

Against Japanese money, the euro was down 0.7 percent at 113.80 (EURJPY).

GBPUSD bombed down to its lowest since March 2009 at $1.4249 before clawing back to $1.4410. Data showing that British house prices might be cooling was probably the catalyst for that.

We are still bearish on the single currency. It looks like its continuing to head down to $1.20, but time will tell.

Meanwhile, Larry´s playing the Volcanic Ash/BA Strike Lottery and was last seen wandering around Stanstead Airport trying to find a shop that sells Karrimats.