Investors appear to be falling for the USD, but they are not totally smitten. Overnight the dollar has ralllied within its recent trading range, reinforcing the profit taking signals that we noted yesterday. While the range high holds though (eg, USD/JPY 78.30, EUR/USD 1.3025, NZD/USD 0.8225) we are still reluctant to pay up for the dollar assuming more sideways chop. Elsewhere, higher Brent crude oil prices are supporting the NOK, pushing it towards its 2011 high (EUR/NOK 7.4885).
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Barclays Capital