It's that time of the month again
The moves today so far is basically a reverse of yesterday, with a little bit less magnitude. The dollar was on the receiving end of a beating yesterday, but today it's come back roaring.
This was yesterday's trading performance:
And compare that with today's:
Month end flows? Quarter end flows, anyone?
It's going to be something that will carry on for quite a bit this week, especially when we have a shortened week. Most markets will be closed on Friday in observance of Good Friday.
Although the dollar is still lower against most major currencies, against sterling it has pretty much pared almost all its losses. And with cable now breaking the 100-hour MA (red line), it's not exactly a pretty picture for sterling bulls - particularly when you put that together with EUR/GBP flows.
