Dealers report orders being left by Asian reserve managers to sell EUR/USD, sell AUD/USD, buy USD/CAD as they book profits after a very nice trend in recent sessions. Seems as though they are just saying “enough is enough” for now, and looking to establish a new range.
Traders also report a very large buy order has been executed by a US money center bank in USD/JPY for upwards of 3 yards of dollars. That same bank put out a sell recommendation on EUR/USD this morning as well. The BIS was spotted buying USD/JPY at the 90.60 level earlier in the session, we are told.
Also getting lots of buzz this morning is talk the UK’s Vodafone may sell its stake in Verizon Wireless, resulting in a huge sterling positive flow.
All this adds up to a day of backing and filling after very nice trends. A healthy thing for the market, setting up some opportunity for scalpers, many of whom have been trampled the last 10 days.