Tentative moves in some of the key majors, with EUR/USD getting pressed lower into the mid 1.0500’s again in tandem with a USD/JPY move through 112.50.
Month end flow suggests some USD selling into tomorrow’s London fix, but broader sentiment remains that of using any USD dip to reload on longs. EUR/GBP buying also looks to have receded a little, having stalled comfortably ahead of 0.8600.
Buying of Europe (central bank) is usually transacted over a number of days, so we do not rule out sporadic spikes in the cross rate near term. Beyond this, the downtrend remains very much in place, but little room conceded on the upside as yet, so we still remain wary of a short squeeze either side of the Italian referendum. AUD/USD is still eyeing .7500+, with NZD/USD hovering below .7100.