In the wake of the Telegraph article on Monday highlighting the fact that Airbus's currency hedges are set to expire in the near future, dealers note growing fears that there is complacency on currency hedges from European manufacturers on a wide scale.
An acceleration in USD losses could bring these corporates into the market to hedge and exacerbate an already strong trend. Also of note today, dealers expect USD selling at the month-end fixing at 16:00 GMT in the wake of strong stock price gains in the US this month, giving overseas investors larger USD exposures. EUR/USD is underpinned at 1.3200.
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