A whole day’s move wiped out in a flash
One minute EURGBP is feeling out new lows, the next we’ve broken the day’s highs, and some.
The break of 0.8740 earlier didn’t lead to anything really damaging and we’re now back above the 200 dma at 0.8756, just.
EURUSD has been helped back into the steady range around 1.1630/40 as the dollar also goes into reverse. While we might have been disconected with yields earlier, we look to be back in that rut again as 10’s break down to 2.36%. USDJPY fell to 113.86 in this move.
For pound watchers, I suspect that we’re seeing a bit of overextension to recent moves. As I’ve mentioned already today, up 260 pips in GBPUSD over 3 and a bit trading days, and -170 in EURGBP over the same time, on pretty much no real news or events, is perhaps pushing the boundaries a bit. Factor in the first day of a new month and the upcoming FOMC tonight and there’s plenty here to see markets jumping around as traders jostle for position.