FXstreet.com (Barcelona) - Curiously, yesterday's selling pressure did not impact on the euro. In fact, the cross climbed as high as levels shy of 1.2600, settling around 1.2550/60 during the Asian session and resuming the downside after the London open.
According to M.Helt,m Senior Analyst at Danske Bank, “On risk-off days we would usually see dollar buying, not selling. The pattern was likely broken by two drivers: (i) markets are pricing a higher probability of QE3 in the US after the soft Fed minutes and weaker US claims data and (ii) investors are in the process of reducing short euro positions from stretched levels – not just against the dollar but across currencies”.
According to M.Helt,m Senior Analyst at Danske Bank, “On risk-off days we would usually see dollar buying, not selling. The pattern was likely broken by two drivers: (i) markets are pricing a higher probability of QE3 in the US after the soft Fed minutes and weaker US claims data and (ii) investors are in the process of reducing short euro positions from stretched levels – not just against the dollar but across currencies”.
