The Sovereign bids we mentioned yesterday in EUR/USD at 1.2980 did their job, a sure sign that the market is still a bit unsure of itself and unwilling to push real hard. Nevertheless, sentiment remains very soggy with the EUR, AUD and NZD the main sufferers. Yesterday’s interbank vols which were pricing in extended range trading for cable and USD/JPY seem to have been spot on. On the crosses, the AUD/NZD barrier at 1.2850 continues to hold but like nearly all barriers, will surely be popped sooner rather than later.
Good luck today.