Well the forex market has certainly gotten caught on the wrong foot by BRIC developments.
Russian Finance Minister Alexi Kudrin yesterday said he had confidence in the dollar and indicated there were no immediate plans to switch to a new reserve currency, while Kremlin aide Sergei Prikhodka said BRIC leaders didn’t intend to discuss new reserve currencies in any great depth. Rather they would be concentrating on possible ways to reform international financial insitutions.
Well from what we’ve heard this morning, all that was just sooooo much old toffee, flannel, a smoke-screen. It’s a funny old world, part whatever.
EUR/USD is up at 1.3870. Sources report sell orders lined up at 1.3885 and then 1.3900.
EUR/USD is also garnering support from a strong short-covering rally in EUR/JPY, which is presently up at 134.05, having posted a session low down around 132.70/80 earlier. As aforementioned a swiss investment house was a notable buyer around the lows.
