Asian Central Bank (ACB) intervention has gone through the roof this week. Traders are suggesting amounts around $20bln although this may be on the conservative side. Despite a very dull day in Asia for major pairs, ACBs have been very active intervening to keep their domestic currency weak.
The leader of course is the Bank of Korea who is estimated to have bought in excess of $2bln today (over 8bln for the week) as USD/KRW continues to sink lower and lower. Other regional ACBs have also intervened today including the central banks of Malaysia, Indonesia and the Philippines although nowhere near the extent of Korea. A conservative $3bln figure today would be ballpark numbers.
One suspects EUR/USD will not be going too far again on the downside today – in essence it should be a repeat of yesterday but hopefully without all the headlines!
