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6 Feb 2015
USD continues to be on the back foot against EUR and GBP – Investec
FXStreet (Barcelona) - The Investec Team shares that USD has continued to be on the back foot against the euro and the pound, with strong UK data supporting GBP, and buying by SNB and the Denmark central bank boosting the euro.
Key Quotes
“The US Dollar continues to be on the back foot after soft US trade data yesterday and some recovery in oil prices has the market squaring long US Dollar positions.”
“Recent stronger than expected UK PMIs have helped the Pound strengthen against the US Dollar and once the event risk of an on-hold Bank of England passed yesterday, the Pound broke above 1.5300 against the greenback, the highest level since the first week of the year.”
“The Euro also recovered against the US Dollar after Wednesday's ECB Greek collateral change driven sell off.”
“Purported buying of EURCHF by the Swiss National Bank through EURUSD and USDCHF (using separate legs to gain more liquidity in execution) to move the pair back into an 'unofficial price corridor' helped propel the Euro higher.”
“The Euro was also supported by EURDKK buying after another rate cut in Denmark into further negative territory as the Central Bank aims to squeeze speculative EURDKK short positions.”
Key Quotes
“The US Dollar continues to be on the back foot after soft US trade data yesterday and some recovery in oil prices has the market squaring long US Dollar positions.”
“Recent stronger than expected UK PMIs have helped the Pound strengthen against the US Dollar and once the event risk of an on-hold Bank of England passed yesterday, the Pound broke above 1.5300 against the greenback, the highest level since the first week of the year.”
“The Euro also recovered against the US Dollar after Wednesday's ECB Greek collateral change driven sell off.”
“Purported buying of EURCHF by the Swiss National Bank through EURUSD and USDCHF (using separate legs to gain more liquidity in execution) to move the pair back into an 'unofficial price corridor' helped propel the Euro higher.”
“The Euro was also supported by EURDKK buying after another rate cut in Denmark into further negative territory as the Central Bank aims to squeeze speculative EURDKK short positions.”