Dealers note continued heavy Russian sales of EUR/USD this morning but are unable to peg the reason behind it. It could be linked to intervention to support the rouble though we’ve seen no evidence of that on the wires. It could be that Russians are losing faith in Europe after diversifying their reserve mix to 45% Euro over the last few years. EUR/USD trades in the low 1.3990s.
Credit markets around the globe remain in the deep freeze as governments as far afield as Ireland and Russia itself cobble together packages to support their financial institutions and markets.
