I expected at least a test of the 1.4840 level in EUR/USD and a 88.00 test in USD/JPY but we came up short on both fronts. Slightly higher bond yields after the 30-bond auction went off weaker than the shorter maturities earlier in the week may have helped save the dollar’s bacon.
We’re consolidating now in the 1.4780s in EUR/USD with US real money noted buying on dips after the move to 1.4815/20.
Traders also noted buying by a proxy for the Monetary Authority of Singapore in USD/SGD. That should lead to some EUR/USD buying on dips,as we’ve seen in the past.
