We are sitting just below what many see as a pivotal short-term directional level at 100.00. Hedge funds have returned from their August holidays with a strong desire to drive this pair higher so we will have to wait and see what their conviction is like. The short-term market is probably long already but they are hoping that corporate demand is strong enough to trigger option-related stops above 100.10.

I’d still prefer to be long rather than short but I don’t like trading static markets so prefer to wait until the movement gets underway.