With the late London fixing coming up, dealers seem to be concluding that there will be one-more bout of demand for the pound as a UK clearing bank dividend plays havoc with the market. The demand may dry up once 15:00 passed, traders say.
EUR/USD has been weighed down by EUR/GBP selling and has failed to forge a new intraday rebound high despite a very strong rally in US equities and rebounds in both oil and gold. We trade now at 1.4633.
What can’t go up, must come down, as we like to say.
Support comes in near-term at 1.4620/25. Small stops are eyed below.
