EUR/USD continues to drop since yesterday's comment out of the ECB that it's "worried Euro strength will hurt recovery in the crisis states." This comment caused the 1.3500 figure to hold and the Euro currently trades underneath the 1.3400 figure. The German finance minister Schaeuble and central banker Weidmann came out with comments of their own in an attempt to support the Euro; but to no avail. The Germans would like a weaker Euro as it would be better for their exports; but they realize the consequences of the Euro weakening - that equities will most likely follow suit causing the crisis in the periphery countries to reemerge.
Although USD/JPY dropped substantially on comments from the G-20, risk appetite didn't decrease, and the US 10 yr came under selling pressure yesterday. USD/JPY has since rebounded and if it starts to take off again, there is little resistance until the 95.00 figure - a key psychological number.
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