It’s always the unexpected which moves the market the most and as Jamie has so comprehensively pointed out below, Trichet’s comments really put a cat amongst the EUR-short pigeons. EUR/USD has posted a very firm close above 1.3350 and trying to pick a top looks like a dangerous exercise for now.
Elsewhere, cable was held back by EUR/GBP short-covering; the AUD/USD did exactly what the order board suggested by triggering stops above 1.0000 but failing just shy of significant macro-fund sell orders at 1.0020/30 (and of course the EUR/AUD bubble began to deflate); and EUR/CHF and EUR/JPY also posted gains going on 2%.
It’s Friday, risk-off day in Asia, so I guess it’s best to expect the unexpected (helpful I know!)
Good luck today and TGIF
