Dealers note a late uptick in dollar buying from European accounts. Not sure if it is related to the IMM close or not. A UK clearer had heavy dollar buyers across the board in the last few minutes while a French name has been a particularly heavy buyer of USD/JPY in the last few minutes.
Dealers are eyeing the VIX index of implied volatility on the S&P 500. A failure to break out of its recent range highs around 31% despite today’s financial meltdown(s) would be taken as a sign that volatility should fall and prices may rise. EUR/USD trades at 1.4191 and USD/JPY at 105.70
