Dollar has made across the board gains this morning. Someone mentioned John Taylor at FX Concepts opining in his latest missive, that the dollar index (DXY) could be up at 84.75 by end of the year!! (currently around 80.20) Now I haven’t seen anything to confirm this, so it’s only heresay.
Anyways, was interesting to get reports of hedge funds selling EUR/USD in early trade today. EUR/USD is down at 1.3218 from early 1.3305 having been as low as 1.3197. The early selling accelerated when a UK clearer sold around a yard into an illiquid market. Apparently they were executing an order on behalf of a US corporate and started selling around 1.3250.
BIS turned up buying around 1.3200 and we bounced back up to around 1.3225/30. Then Fitch’s Irish downgrade sent us down again, but only to 1.3197 before steadying.
Sell stops are said to be gathering down through 1.3170.
USD/JPY up at 84.00 from early 83.75, firm US yields continuing to lend support.
Cable down at 1.5755 from early 1.5825, having been as low as 1.5736. Reserve Bank of India was seen buying around 1.5760 helping slow, but not stopping, the sell off.
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