EUR crosses

EUR/JPY longs booking profits ahead of NFP tomorrow

EUR remains under pressure in fairly illiquid conditions and there have as yet been no reports of any Sovereign buyers in EUR/USD. EUR/JPY profit taking is being given as the main reason behind the EUR selling.
Cable support near 1.6200 has held so far and I think this might be an important level to watch.

  1. The European Central Bank collected yesterday demands — on dollar swaps very small figures turned out, even there is no billion, today it becomes clear what will be demand for EUR; probably the situation becomes complicated; on operation of a sterialization for 7 days traditionally there were rather large sums, but since fall decrease went, the situation with demand today will clear up. Reduction of sterilization means that EZ banks don’t bear money in European Central Bank, or their problems with means, or accumulate the reserves, these are participants of the market perceive as threat and therefore euro goes down in price, today we will see how the stock market after the first reaction if there are valid risks and EUR/USD will lead reacts the first, and the stock market will start giving: through European Central Bank for 7 days while we keep on 197.500 if is less, than the last figure — yesterday’s falling of EUR isn’t casual, there are problems at Europe, while with liquidity.

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