EUR/USD found steady demand from central banks during the early US session, with several sovereign seen between 1.3830 and 60. Prices raced higher, breaking 1.3900 and triggering a sharp short-squeeze as a US investment bank dumped dollar across the board against a basket of currencies. Talk of $10 bln in sales made the rounds, but was unconfirmed. EUR/USD ran into a wall of offers in the 1.3980/85 area during the US afternoon.

USD/JPY consolidated its huge gains after briefly probing through the 200-day moving average at 97.18. Large stops are eyed at 97.50, dealers report while trailing stops are below the market at 96.40.Japanese investors continue to pour money into all corners of the globe, boosting virtually everything versus the JPY.

EUR/GBP was supported bu month-end demand from European central banks. Traditionally the banks convert a UK payment to the EU at every month end. The cross was also supported by technical buying after yesterday’s bounce from the 200-day moving average. S US investment bank recommended longs as well.Cable briefly breached 1.6000 after the London fixing only to be smacked as low as 1.5880 in under an hour. It range-traded in the lower 1.59s the balance of the afternoon.

AUD/USD saw Asian central bank demand on dips this morning and were underpinned by broad-based demand for commodities today as yesterday’s bond-inspired jitters settled down. Both AUD and CAD end near recent trend highs while the majors are a good deal above recent dollar lows.