Traders report a UK clearing bank was a large seller of EUR/USD just after the passing of the 16:00 GMT fixing. Odds are they were unable to pair-off their selling interest and had to enter the open market to complete a fixing order.
EUR/USD has rebounded slightly, back up to the 1.5005 area. I still favor a risk-averse approach. This Dubai situation is not resolved and others are in similar straits.
Just crossing the wires, Trichet repeats that it is too early to say the crisis is over and that the ECB’s challenge is to remove extraordinary measures in timely fashion.
If non-standard measures bring risks to price stability, they will be removed immediately, he says. That last statement is a bit stronger than anything I’ve heard lately…
