http://forexblog.oanda.com/20100430/month-end-needs-overshadow-greece-and-china/ Simply put, today is month-end. Traders all week have been consumed with the peripheral market noise. The Fed, Greece, China, all important, but when it comes to 'lemming' revaluation of portfolios for month-end requirements, logic tends to be thrown out the window with the bath water. Banks models suggest that USD will have to be sold today. With a long week-end in the UK and strong a 'percentage' chance that a Greek bailout could finally be formulated has us asking the question will market participants want to trim their record short EUR positions. The percentage play says yes. Technically, already we have taken out the 1.3280 and the 1.3310 resistance this morning and there is a plethora of individuals wanting to sell EUR's at higher levels making this move drag-on. Their ideal entry level is around the 1.3400 print. The intraday month-end move can be somewhat justified by what portfolio managers have been doing in April. They have been meticulously selling EUR denominated assets' requiring them to repurchase EUR's to re-hedge themselves. Will the SNB allow us to re-enter at better levels?
