Traders have noted good selling of cable in the last half-hour or so from US custody banks but the pair doggedly holds onto support at 1.6250/60 despite today’s nearly relentless slide in EUR/USD.
1.4694 is the EUR/USD low so far. The reflation trade is being unwound across the board today, though we still trade in very orderly fashion. Even the strongest markets like Brazil are feeling a bit of pain today. The real is softer today, at levels not seen since Brazil enacted currency controls two months ago.
AUD/USD is down at 0.9050, the lows of the range in recent sessions. A break targets levels below 0.90, last seen in late November.