The euro has raced higher, with the $1.35 level convincingly breached and the option structure rumored to be struck near $1.3550 taken out.   The US dollar has moved to new highs against the Japanese yen  near JPY91.40.  Beneath both lay interest rate considerations.  There is more evidence today that a tightening of euro area financial conditions is underway.  This has been a developing story, but two more pieces of the puzzle fell into place today.  First, the ECB itself reported that banks in the area tightened credit standards further in Q4.  This ... Read More