EUR/USD briefly dipped below the 1.2800 level as the market start to front-run some of the antcipated month-end flows. Lows of 1.2798 were recorded. 1.2763 is important support as the day wears on.
Notwithstanding today’s somewhat better than expected US GDP data, the market still sees a severe and prolonged golbal recession for as far as the eye can see. This is keeps risk aversion high and the dollar and yen in demand.
