The Bank for International Settlements (the central banker’s central bank) has been spotted selling EUR/US into strength in the 1.2660 area, dealers report. If old correlations hold sway, EUR/USD should struggle early today. Emerging markets are under pressure along with the developed market equity bourses. Commodities are heavy as well. We still like selling with a tight stops above the 1.2700 level, say at 1.2710.EUR/USD trades at 1.2650.
Far Eastern accounts have been buyers of EUR/USD today, along with Cable. India has been a sterling buyer as well. These guys have been nibbling for the last week or so on the buy side, a point with remembering if the macro picture begins to shift.
