EUR/USD peaked at 1.3609 ahead of the 10.00 AM cut and spot has dribbled back down to 1.3585. Rumours that Russia was going to adjust their reserve basket to a larger portion of EUR was behind the pre-10.00 AM pop according to some traders, who also supposedly saw them buying in the market, having been on the sell side yesterday, however options traders think it had a lot more to do with the sizeable expiries.
Apparently there were stops around those same levels but the option defence took care of them. New York traders feel that the topside failure on a day with such depressing news for the dollar looks ominous for the single currency, and reckon that the downside is vulnerable in the afternoon session.
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