Central bank dip buying is helping keep European currencies from breaking dramatically lower this morning. The BIS is said to have bought Cable in the 1.6370s, Russia has been a presence in EUR/USD and the SNB in EUR/CHF.China has also been rumored below 0.8200 in AUD.
Looks like it is going to take a big slide in US shares to get the markets moving aggressively to the downside. We’re down 1% in futures trade at present.
EUR/USD changes hands now at 1.4122. Stops are above the 1.4075 level. Cable is at 1.6417; eying resistance at 1.6430/35.