Israel has been intervening today to weaken the sheckle to the tune of $600 mln. Traders reported similar action from the Monetary Authority of Singapore overnight. Expect to hear talk of the Bank of Korea buying dollars as well. All of these banks are trying to maintain export competitiveness.
These dollar purchases sometimes end up hurting the greenback against the majors, as Asian central banks in particular, tend to diversify a certain percentage of their intervention proceeds in EUR by selling some of the dollars bought against their local currency One more factor keeping EUR/USD bid…
