Dealers say there has been a big uptick in selling of EUR/USD on rallies this morning by central banks. A cluster of selling was spotted earlier around the 1.3150 level,they saw. “Reserve diversification” was one of the catalysts for the big run up in EUR/USD earlier this year. I guess we can call theis selling “reserve concentration” as central banks move back into the dollar.
Also noted is significant selling interest in USD/JPY toward the 98.80/99.00 level from exporters and model funds, dealers report.