EUR/USD popped quickly back above 1.50 from the 1.4980 area sending dealers scurrying to find a reason. The only thing on the wires that might be tangentially related are comments from the head South African central bank making comments on inflation. There were rumors this morning of South African capital controls, and the focus on the nuts and bolts of central banking rather than on capital controls may by helping risk appetites…
Some also note talk that an aggressive US investment bank is targeting the 1.5050 barrier option. Not sure if it expires today, but if it does, it would give them great incentive to knock it out.
Some are blaming a stop-run in EUR/JPY above 137.00.
