That is if hearsay in the interbank market can be believed. Macro funds and CTAs have been adding to existing shorts over the last 36 hours. Sovereign types like Asian central banks and the BIS have also been actively buying dips and selling rallies. It’s also interesting to note that China have reportedly been selling EUR/USD rallies, though perhaps like everyone else they are merely trading the ranges and we shouldn’t read too much into it.
- Sell orders reported 1.3190 through 1.3220
- Bids are plentiful at regular intervals on 1.30 handle
Dealers expect continued range trading broadly between 1.3000/1.3325 over the next week or so and it will take some developments (or lack thereof) in the Greek saga to drive the pair out of this comfortable range.
