Traders report significant selling in EUR/USD in the 1.4415/20 area. If I had to hazard a guess, I’d say it is the Middle Eastern central bank who was soaking up EUR/USD at 1.4270 just 30 minutes ago.
Typically, the way these things work out, is that trades that go sour go into reserves. Trades that profit quickly become “trades”, and the trader looks like a genius. At least that’s the way portfolio traders at the banks I worked at played the game.
EUR/USD is stabilizing in the 1.4405 area. Large stops are clustered in the 1.4500 region now from medium and long-term players.
UPDATE: We’re hearing its an Asian central bank seller of EUR/USD, but the concept is the same…