EUR/USD has extended it’s rally to 1.2292. Talk is that SAMA (Saudi Arabian Monetary Agency) has been an active buyer this morning. That explains alot. China and SAMA both buying, thats pretty powerful. Don’t hear too much of SAMA, but when they come in they can be lumpy (deal in large amounts).

Yesterday various sovereigns seen selling on move up to and just above 1.2300. Will be interesting to see if they turn up again.