A number of pairs only needed a small nudge in Asia today in order to prompt a round of profit taking. AUD/USD got knocked off its lofty +97 cent levels by poor housing numbers but the truth be known the market is long to the hilt. EUR/USD as Sean pointed out fell in sympathy with AUD/USD before EUR/JPY sales kicked in (as USD/JPY fell below 83.30).
Tonights London fix may be interesting as the passive hedgers re-balance their books. The US Dollar is expected to be in big demand whilst Euro will also be required. The only problem is nobody knows whose done what already. Ditto the supposed LHS EUR/GBP 3 yards transaction.
Month end is never for the feinted hearted so good luck.
