Seems the crazy movements is down to month end, quarter end, and Japanese fiscal half year end. There was expectation for certain flows, based on forecasts, but when they didn't materialise, eur, aud and gbp has positions unwound.
This from forexlive puts it far more eloquently ..
These month-end fixings are maddening. Every bank puts out their forecasts based on sophisticated models and HAGS (hairy-assed guesses) and they all turn out to be wrong…
The buck was in demand as started to become clear in the run up to the fixing and sent the market scrambling to offload EUR, GBP and AUD and buy the greenback.
EUR/USD has fallen back to the 1.36 level while cable is threatening 1.5700. AUD is down to 0.9660.
Stornger GDP, Chicago PMI and KC Fed are all contributing to the market pushing back expectations of QE in November.
This from forexlive puts it far more eloquently ..
These month-end fixings are maddening. Every bank puts out their forecasts based on sophisticated models and HAGS (hairy-assed guesses) and they all turn out to be wrong…
The buck was in demand as started to become clear in the run up to the fixing and sent the market scrambling to offload EUR, GBP and AUD and buy the greenback.
EUR/USD has fallen back to the 1.36 level while cable is threatening 1.5700. AUD is down to 0.9660.
Stornger GDP, Chicago PMI and KC Fed are all contributing to the market pushing back expectations of QE in November.