Looks like we may be in for very quiet trading conditions during the New York afternoon through the end of 2009. Markets will start to thin out fairly dramatically come the third week in December, so liquidity should be reasonable until then. Interest is another matter and if we don’t set sail for levels above 1.5150 soon, the market just might be content to book some profits and wait for the new year.
Reports of expiring options barriers at the 1.5150 level should give the market one-last upside push if we get any sort of risk-friendly news overnight. Traders report that spec longs are now selling into strength on the approach of 1.5150, so looks like the barriers may expire without being triggered.
EUR/GBP demand is helping underpin EUR/USD on dips this afternoon, helping the single currency edge up to its present 1.5090 level.
