European Wrap: Market continues to savage the euro; By FastBrokers

Written by FastBrokers House
2010-11-30 00:00

Another morning of pain for the single currency, suffering across the board losses. EUR/USD down at 1.3015 from early 1.3100 havng been as low as 1.2982.

Russia and BIS both seen buying early and we traded in a narrow range either side of 1.3100 for some time.  Then all of a sudden the US investment house who does God’s work came in and hammered EUR/USD.  A series of rumours (see above) then circulated and we were heading lower and quickly.

Barrier interest  at 1.3050 gave out easily, not even a pause.  Reports kept coming that the US investment house was still selling and we soon had 1.3000 looming before us. Slight pause ahead of there before we pierced the level (1.2998 low) followed by bout of profit taking back up to around 1.3025/30.

But this was a brief reprieve before another wave of selling which then took us all the way to session low 1.2982. Model funds were notable buyers around the lows and we’ve recovered back above 1.3000.

Real money has reportedly been selling in recent trade.

USD/JPY down at 83.85 from early 84.05, having been as low as 83.73. The pairing has been pressured by lower US treasury yields, but Japanese importer buy orders lined up from 83.80 to 83.50 are providing a cushion.

Cable slightly lower at 1.5525 from early 1.5545, having been as low as 1.5509 so far.  Selling of the EUR/GBP cross, down at .8385 from early .8425, has provided cable with some support.  The cross has been as low as .8366, but buying by BUBA for month-end purposes lent some support in late morning trade.

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