Traders are suggesting an Asia central bank has been seen buying GBP/USD from just below the figure. Nothing untoward here, it happens nearly every day with Asian c/b’s buying US Dollars in order to keep the local currency weak then recycle the (unwanted) US Dollars into Euro, GBP, AUD etc.
Reuters is now reporting that Israel’s c/bank has intervened to the tune of $500mln this morning – I wonder what they are going to do with their unwanted US Dollars!