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Russian central bank bought $1.4 bln today

By   || October 8, 2009 at 13:48 GMT
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Another example of the constant headwinds that the dollar faces against the EUR. While Russia is buying losts of dollars to weaken the rouble to maintain export competitiveness, it diversifies 40% of those dollars into Euros. So do many of the Asian export-led economies…

That constant EUR bid helps keep dips in EUR/USD shallow until the market gets overwhelmingly long. Given the moves in AUD and gold this week, now might be one of those times when the market is loaded to gills and may be able to overcome the central bank demand as frustrated longs head for the exits. EUR/USD has been relatively dead money compared to commodity currencies again this week….

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