EUR/USD just cannot bounce, barely able to reach 1.4705 before slipping to fresh lows in the 1.4680s. Turnover is fairly heavy, traders report. Gold is making fresh lows off the move, having broken below $1130, oil remains below $73 and US equities are on their lows, though the decline is not particularly dramatic at only 1.25%. Clearly, the greenback is the most crowded component of the carry trade, so the small declines in all the other markets are translating into an out-sized rise in dollar.
Stops lie in the 1.4670/80 region, dealers report, while support is at 1.4625.
Keep an eye on cable; a break of 1.6250 should unleash another broad wave of USD buying.
