Based on all that’s happened in the EUR over the last 48 hours, and based on the fact that the EUR is already at reasonably high levels against the USD, GBP and the JPY for that matter, I’m surprised that the sell-off in the single currency isn’t more aggressive.
Dealers are referring to reported Sovereign bids 1.4070 through 1.4050 as one reason for their reluctance to sell. I’m not sure that European dealers will be as impressed and they will probably take the buyers on and see what happens.
