Remember how during “normal” times there was constant demand for EUR/USD from emerging markets central banks as they would intervene to buy dollars against there local currencies to keep their currencies competitive. South Korea, Singapore, Brazil, Russia… Where art thou?
With the world scrambling out of emerging markets and seeking shelter in the greenback, central banks are no longer buying dollars. No dollar buying, no euro buying…One more reason for EUR/USD to trade with an easier tone…
