Interbank dealers say Asian buying interest in EUR/USD has been scant today. What little central bank interest seen has been Russian, sources say. Stops are seen in the 1.3830 area and again below 1.38 but the largest stops are clustered around 1.3775, we’re told.
The trouble with very large, market-changing pools of stops is that market makers are forced to protect themselves buy getting short ahead of the stops. The risk then becomes the stops remain untriggered and they are forced to cover positions at higher levels.
EUR/USD changes hands quietly at 1.3850.
