Traders report a European corporate was a very heavy seller of EUR/USD from the 1.3500 level down to 1.3465 in London this morning.
Likewise, a German bank is said to have bought a yard of USD/CHF during the European morning.
This suggests to us that there is pent-up hedging to be dome by European corporates who are only too happy to buy USD on dips.
EUR/USD has eased back to the 1.3450 level aster Strauss-Kahn’s comments on the lack of economic leadership in the EU.
