Dealers note offers in the 1.2750 area now in EUR/USD but good bids are seen on dips to 1.2650. Stops from short-term specs are now at the 1.2650 level if EUR/USD slips through support.
US real money accounts have been buyers of AUD/USD on dips. Bids are seen stacked up now on pullbacks toward 0.6500/10.
China was a rumored buyer of gold overnight, looking to diversify reserves beyond the greenback. This is bad news for the euro, the former choice of reserve managers looking to spread currency bets.
There have been tantalizing rumors that Japanese accounts have been big buyers of dollar calls in USD/JPY for Monday expiry with 99.00 and 100.00 strikes with public pension funds rumored among the buyers. This raises the notion that they may anticipate intervention or some sort of concrete deal from the G20 over the weekend.
Cable remains extremely thin. One German bank sold GBP 200 million and drove the pound don from 1.4820 to 1.4680. The Korean central bank is said to have been a seller of the pound as well.
