EUR/USD pullbacks have been modest despite talk that a major Middle Eastern player (Saudi monetary authority the latest name we’ve heard) is capping the market at 1.4105. EUR/USD dipped to 1.4065 but is now back in the 1.4080s. Offers are said to be layered up to 1.4120 while technical resistance comes in around 1.4135/40.
China’s call for a supra-national currency continue to hamper the dollar as does ongoing interest to reestablish the reflation trade. Traders note strong interest to buy emerging markets again today with emerging Europe and South Africa popular financial destinations today.
