EUR/USD fell all the way to the 1.4650 level, remarkable given the tighly range-bound nature of that pair in US trade today. Soft oil prices and modest equity losses seem to be a slight catalyst but flows are generally light, traders report. We managed to extend the range about 8 ticks to the downside from the earlier 1.4658 low. Woohoo!
Some EUR/GBP sales helped send the EUR/US to its lows while cable shows a bit of pep. Risk would appear to be a major unwinding of the long EUR/GBP play should the dollar ever snap out of its funk. The greenback is unloved currency #1, but the pound is very close second…Cable rose to 1.5970 over the last hour as EUR/USD slipped to session lows.
Traders say central banks remain buyers on dips, diversifying reserve portfolios. We trade now at 1.4670.