A quick recap of overnight flows in EUR/USD

  • Talk that a very large European bank was seeking to raise fresh capital led to large bids at 1.2900/05 being cancelled
  • Despite the successful French Oats auction, heavy stop-loss sell orders were triggered below 1.2850 (this level should now provide solid resistance)
  • Real money players were seen to be extremely active in the options market, buying downside protection
  • Sovereign bids have reportedly been pulled extensively from the market, so bulls should exercise extreme caution