Traders are blaming the jump in EUR/USD to buying from an Irish bank. A big Dutch name was also a buyer as well.
The Irish buying may have amplified the rally due to credit issues. This is purely a HAG on my part (hairy-assed guess), but back during the worst of the banking crisis in 2008, markets would move dramatically because banks would cut trading limits with banks with dodgy credit profiles. It could be that the Irish bank had a big order but very few outlets in the interbank market, forcing them to push the market up in search of liquidity that was “good to them” (meaning finding a bank with a credit limit for them…
Again, a lot of that happened in the post-Lehman days but it has not been seen since…just a guess on my part…
1.3688 is resistance on the carts for EUR/USD while 1.3700 barriers remain in play…
UPDATE: Talk of Middle Eastern demand on this rally in addition to the above…
Adding to dollar pressure is a Bloomberg story that payrolls fell in 35 of the 50 US states last month…
