Published at 13:24 (GMT) 01 May
EUR/USD and equities managed to move together into the end of last week and for most of Monday, which is seen as "normal" recently. But, in the thin trading on the "May Day" holiday, equities are going sideways while EUR/USD is testing the upside. Real money equity investors may be holding funds back due to the thin, holiday markets. FX traders are pushing prices to see where real resistance or support shows up. For EUR/USD, 1.3220ish seems to be a place where buyers are making a stand. In very thin trading FX dealers and speculators pushing prices higher. While barriers at 1.3300 are the logical target, it appears offers in the 1.3275-80 area, are making any advance toward the barrier levels very difficult. There may be real offers at those levels, but one can bet that options principals with 1.3300 strategies in place are joining the offers at 1.3280 in an attempt to defend their strategies. M .B.