Overview
After poking above $1.20 for the first time in more than two years, the euro reversed lower yesterday and is continuing to succumb to profit-taking pressures today. Comments from ECB's Lane appeared to trigger a reversal yesterday throughout the currency markets. Gold also reversed after approaching the $2000 level, and follow-through selling has been seen today too. The dollar is stronger against all the currencies today. The US benchmark 10-year bond yield is little changed at 69 bp, while European bond yields are off 3-5 bp. The stock markets have not been distracted. Asia-Pacific