Many of the larger flows during the London Morning were dollar buy orders but we sit in the lower end of recent ranges as far as the greenback is concerned. Very good selling of EUR/USD from Mid-East accounts was seen again this morning around the 1.4040 level (from above 1.41 on Friday) but EUR/US managed a rally as far as 1.4075. A USD/CHF buy order totaling 1.5 bln USD was rumored this morning as well, dealers note.
Dips were limited by heavy buying in cable from a UK clearing bank, rumored to be repatriating funds to pay its quarterly dividend.Dealers noted very heavy buying of AUD/USD below the 0.8000 by a US custody bank which helped set the stage for the bounce back to the 0.8060 level at present.
Next up for the market is the Chicago Fed National activity index, a reasonable proxy for the ISM.
