As traders apply their whiplash collars, they seem to agree that there was on or two big orders that went through the market, catching it short, and driving it higher in thin trade. Short-term specs covered shorts while others jumped on the bandwagon, betting on a 1.3700 break.
Solid selling at the 16:00 GMT fixing seemed to fill in the buy order, prompting a swift decline, which gathered moment once the Irish central bank chief said loan losses may rise in that bailed out country.
We’ve given up all our gains and have put in another top just shy of the 1.3690/00 area.
Markets are really thin, both on the way up and the way back down. Expect liquidity to be dreadful in NY this afternoon.