According to some in the market. German corporate demand was seen taking us off the lows triggering the first stop run at 1.3080/85.
Model accounts have also been spotted jumping in thus accelerating the moves higher.
Tied in with the weak US data the mix gives those wishing to run the pair higher the perfect conditions.
Be wary chasing this up. We could get some decent profit taking from this run with a European holiday tomorrow and the ECB when they return.
If you are looking to get in then look to sell into the rally either from here or nearer 1.3200 as a rate cut is not priced in up here.
It’s very choppy so either way keep positions tight.
Additional: Keep an eye out nearer the London fix at 15.00gmt (16.00bst) with all the end of month flows we could see further exaggerated moves.
