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Re: Is it Warren Buffet or is it the FED?
Apparantly the move was the result of rumors about the yuan, traders longed Yen against the dollar. Who put that rumor about is a mystery but it obviously did what they wanted it to! That, together with comments from the ECB about a rate cut being a "crazy idea" (quote from Noyer) had traders covering their long dollar positions.
I agree with you Habib, I can't see this move is sustainable, another Fed hike next week is on the cards, most if not all dollar shorts will have been squared and here (or perhaps a bit higher to 1.2230/50) is a reasonable price to short, I think we'll see a serious attempt on 1.20. It will be nice to get out of this range we've been in, that's for sure.
As usual only time will tell.
Cheers
Mick
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