Seemingly for months , we’ve been in buy-the-dips mode in EUR/USD. Today, the tide seems to have turned. Both India and China were sellers toward 1.4150 earlier in the session and we promptly dropped nearly a cent.
Expect some buying from the Mid east as we approach the 1.4020/25 area, as was the case yesterday.
St. Louis Fed president Bullard continues to speak with a hawkish tone on a tour of European capitals this week. Since he was the prime sponsor of QE2, the shift is having quite a bit of impact…That tone has given the dollar a lift across the board.