EUR/USD being supported by joint rate cut talk

On the wires reports are circulating the FOMC and ECB have an agreement to coordinate rate cuts shortly.

This seems more a case of wishful thinking than factual information for any number of reasons but foremost the reluctance of the ECB to do so last Thursday.

Insane intraday volatility the norm

USD/JPY has jumped back to 104.00 after finding Chinese bids on the dip toward 103.60. EUR/JPY bounced hard as well. EUR/USD is up nearly a cent in the last half-hour. Crazy.

The Fed said it is undertaking another big repo this morning, trying to provide liquidity to all comers. Goldman beat earnings estimates, perhaps helping calm the markets at least momentarily.

Russian selling eyed as well

Heavy intervention earlier today to support the rouble has prompted Russian accounts to sell EUR/USD to central bank’s reserve mix in balance. The same has been rumored from South Korea today. Throw in liquidation by a US asset manager and you have a bad hair day for the euro.

Perhaps the weakness of the rouble has something to do with this factoid from the NY Tines:

As much as $25 billion in foreign capital may have left Russia since the Georgia conflict started, they said: while their growth forecasts were little changed at 7.5 percent, the crisis sharply cut the liquidity of the banking system.

1.4365 support has given way and prices have fallen as low as 1.4325 so far. 1.4310 is next support.