Revisiting the Euro

Thursday last week I pointed out the Euro was bouncing off a key support level.  This morning I'm seeing the Euro gain a lot of ground vs. USD and is now approaching resistance, a surprising move because Germany opposing Eurobonds today should weaken the Euro.  This spike could be partly the result of weak Empire State data out at 8:30 as well as a run up ahead of the Sarkozy/Merkel meeting tomorrow.  In terms of the latter, I expect a Euro sell off tomorrow because I think if anything substantial comes out of the meeting, it will be a dovish ECB mandate (ECB has been notoriously too tight in the past).  Interesting to note oil and copper are not bouncing on this move - both are relatively flat this morning.  Ags are up nicely, though - corn, wheat, sugar, OJ, and rice all up >1%.  I will be cautious in the commodity space as I expect Euro resistance around 1.44-1.4450, but looking to trade MOS today on ag strength.  If the Euro does break the range and move higher, I will be more bullish on commodities.