Forex News: Intensifying stress on U.S. financial system, as government and Fed step in to prop up Fannie Mae and Freddie Mac, looks set to spark another USD selloff, with EUR poised to pop above April record, says CommentaryPlus senior analyst Russell Floyd; while steps announced by Treasury and Fed appear to make an implicit government guarantee for mortgage giants explicit, there's still likely to be more turmoil in coming days, with EUR/USD trading a key outlet for investors to express their views on heightened risk. Says short-term EUR/USD bulls can buy 1-month 1.6260 1-touch for 47% of payout; more aggressive bulls can buy 3-month ATMF (1.5915) EUR call/USD put with 1.6320 reverse knock-in for 1.0% of EUR notional amount. Medium-term EUR bears expecting near-term spot spike can buy 3-month 1.5915 EUR put with 1.6260 knock-in for 0.62% EUR or 6-month knock-in for 3.34% EUR. See FX OPTION VIEWS column
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