Presently at 1.2810. West coast bank seen notable seller of the pairing. Overnight sell-off below 1.2800 ran into buying from Asian sovereigns. Will be interesting to see whether they’ll turn up on any further slippage.
Earlier hedge funds had been notable sellers in 1.2870/00 area and suspect they’ve continued. I was earlier reading the musings of one well known foreign exchange hedge fund manager who was very bullish the dollar (just for a change) going forward.
One line read “We recommend buying dollars on weakness as by next week it should turn higher and rally for a minimum of several months.”
Talk of stops through 1.2770 earlier.
