EURUSD

D1

H1 

Mixed G20 Messages

The IMF meetings are in full swing in Washington, with the focus on how the wider G20 can contribute to resolving the sovereign debt crisis in the Eurozone. So far messages have been mixed: Russia has dismissed the prospect of joint BRIC aid for the Eurozone, and the G20 statement made no mention of direct support. However, the bloc noted that an increase in the flexibility of the EFSF was planned and it appears that Eurozone officials have become more agreeable to leveraging the EFSF, though details are lacking. The meetings will extend into the weekend and more decisions are possible, though this should not detract from the Eurozone's own commitments as Greece works to secure fresh funding from the Troika and adopt new austerity measures. In another blow to the Eurozone's fiscal situation, Slovenia was downgraded to AA3 by Moody's overnight on the back of concerns over its banking sector and the prospect of government support. The country may not be alone in this predicament should conditions deteriorate. EURUSD traded in a range of 1.3455-1.3567 during the Asia session and USDJPY traded 76.20-76.36. We are long a 3m USDCAD call spread as a trade recommendation.