As I mentioned yesterday, there were very large stops below .8440 in EUR/GBP and they were triggered during the European morning session yesterday. There was significant Sovereign buying interest once the stops were triggered and as Jamie mentioned overnight, the BOE were supposedly buying EUR/GBP in order to cover part of their loan payment to Ireland. I’m reliably informed that billions of EURs changed hands in a fairly tight range between .8430/50.
Dave is taking over for a few hours. Please take it easy on him, he had a big night out. See you tomorrow.
