Stock Frequency Data Graphic
Markets

Month-end EURGBP demand sees cable on the back foot

The usual month-end demand for EURGBP is once again in play 31 May 2016

With the EU referendum and associated polls/comments/hype all in vogue how ironic that, for the moment at least, we still have the one known about month-end flows.

For those new to FX ,or indeed these pages, the Bundesbank buys a large amount of euros each month-end for the UK's EU membership costs. Strong demand into the 07.00 GMT fix suggests the BUBA at work.

EURGBP currently 0.7609 after highs of 0.7612. Sellers at 0.7620-25. GBPUSD 1.4625 from 1.4616 lows. Demand into 1.4600.

I would also add the move higher in GBP in early Asia was overdone and not merited by just the latest 51/46 ORB poll but rather an opportunistic drive higher in thin conditions.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx