EURUSD was sharply lower after the European open amid good selling from Eastern European names and an increase in Japanese exporter interest via EURJPY. The euro benefited in the Asian session on the negative dollar sentiment, however, good size offers at 1.4830 capped further gains. Softer European indices have also been an influenced, with carry trade currencies also experiencing small downward pressure as a result. Liquidity remains at a premium and the quick move down from 1.4800-10 to 1.4723 lows came on relatively modest volume, although many short term players hit the bid at once for fear of getting caught on the wrong side of the market, which has been a regular occurrence in the current market.
