Dealers noted strong buying by asset managers late in the NEw York morning, helping push EUR/USD into the 1.3630s despite only a modest bounce in most components of the reflation trade. Most of that buying seems to have dried up and prices have returned below 1.3600. Central bank buying was a feature earlier today with the BIS buying in the 1.3560 area. Perhaps we are seeing more of the reserve rebuilding this week that was a feature of trade last week when Russia was buying both USD and EUR.
1.3570 and 1.3550 are support levels on pullbacks near-term. More significant supports lie at 1.3515 (broken downtrend from last Friday) and the 200-day moving average at 1.3450. EUR/USD trades now at 1.3595.
