• EUR/USD: we saw quite large bids from sources like the BIS, Asian Central Banks, and real money funds which managed to stall the market on occasion but ultimately weren’t enough. The FX market, particularly EUR/USD, can sometimes be a bottomless pit and this particular market is very heavy. Conclusion: bearish
• Cable has been trying to rally over the past few days and has moved steadily towards the former pivot at 1.5550. A the first sign of Sovereign offers at 1.5470 and it immediately falls 100 pips. Conclusion: bearish
• USD/JPY is still trying to work through the offers between 93.50/65. If it can do so and trigger stops above 93.80 then I would have to conclude that the market is bullish, at least for the moment.
• AUD/USD: the demand on dips remains very strong and whilst the market can on occasion fill these bids, the rebounds have been very impressive. Conclusion: bullish