On a positive note for the EUR/USD bears, bounces have been totally anaemic but I’m sure many expected a sharp increase in bearish momentum once the strong support at 1.2950 was breached. This hasn’t eventuated and unfortunately we’re in the doldrums again. Latest interbank option vols show no increase from yesterday, with the market seemingly confident that prices will stay inside 200 pips either side of spot for the next week or so. AUD/USD vols on the other hand have edged higher as the market anticipates sharper two-way moves.
AUD/USD and AUD/JPY continue to edge higher on the spot market, with traders booking profit ahead of dual risk events.
