When EUR/USD was unable to get a sustained lift from the big from the sharp rally in US equities kongs began to anxiously look for the exits. The move below the intraday supports in the 1.3230/40 area opened the floodgates and the selling accelerarted. Interbank dealers noted some selling interest at the London fixing which has helped push us down even further.
1.3145 and 1.3110 are support levels below the market. We’ve had reports of central bank buying the last two times we dipped toward 1.3100. Barriers are rumored at that level. Looks like the market will keep selling until it finds a buyer.
We’re just getting reports of heavy euro sale from a US investment bank, both out of London and New York.
