It was meant to be a quiet day in the FX markets today due to the Labour Day bank holiday across most of Europe and China. However, market participants had other ideas. They evidently sharply increased their long dollar bets in the expense of the pound and to a lesser degree the euro and gold. But with the upcoming risk events looming later in the week – FOMC on Wednesday and nonfarm payrolls on Friday – the dollar buying may pause for breath again, especially since most currency pairs have now dropped to key technical levels. Pound takes a pounding The pound has been hit the hardest in recent times owing to a sharp ... (full story)