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EUR/USD easing; real money sellers

By   || February 4, 2010 at 19:59 GMT
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EUR/USD is a shade easier in late trade. We stabilized earlier in the low 1.3760s but heave eased to the high 1.3740s as US real money accounts began selling. These accounts are often active in the  afternoons as they gather up the trades done in local currencies overseas and cover them in the FX markets. After a sharp slide in Europe of roughly 2.5% today and more in markets like Spain, it looks as though the asset managers are EUR/USD sellers this afternoon.

Look for any meaningful bounce to draw out fresh sellers. I’d expect a bunch between 1.3830 and 1.3860. 1.3700 barriers will be defended on further dips.

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